With the increasing adoption of blockchain technology and cryptocurrencies, security incidents like theft, phishing, and fraud have also risen.

SlowMist, a prominent blockchain security firm, released its second-quarter MistTrack Stolen Funds Analysis report, focusing on cryptocurrency thefts in Q2 2024. The MistTrack Team received 467 stolen fund reports, freezing approximately $20.66 million across 13 platforms.

The report identified three primary weaknesses in the industry that contributed to crypto theft and offered methods for users to protect their funds.

Private Key Leaks

Many users store private keys on cloud services such as Google Docs and Baidu Cloud or share them via messaging platforms like WeChat. This practice makes them susceptible to credential-stuffing attacks and phishing scams.

Fake wallets also continued to be a threat. Despite being an old issue, users still download fake wallet apps from third-party sites, compromising their security.

Phishing

Phishing remains a significant threat, especially through malicious links in comments under tweets from well-known projects.

According to SlowMist, phishing groups create similar-looking Twitter accounts and use promotional tools to enhance their credibility. This trickery leads users to click on phishing links, thereby compromising their assets.

Always double-check before clicking on any links, especially in comments under tweets from popular projects.

Fraud

Honeypot schemes were the most common type of fraud in Q2. Scammers lure victims with promises of high returns on new tokens. Once purchased, these tokens cannot be sold, trapping the victim’s funds. Most honeypot incidents occur on the Binance Smart Chain (BSC), exploiting the hype around meme coins and “shitcoins.”

Protective Measures

To safeguard against these dangers, the report recommended the following:

  • Utilize resources like Scam Sniffer to prevent phishing attempts.
  • Increase awareness and vigilance.
  • Confirm addresses using tools like MistTrack or GoPlus’s Token Security Detection.
  • Review contract audits on platforms like Etherscan or BscScan.
  • Conduct thorough research into project backgrounds.

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