A new report reveals that Ethereum was the blockchain most affected by crypto scams in the past year, with £576.6m worth stolen.
Ethereum is the blockchain most affected by crypto scams
According to an analysis of the REKT database, by Smart Betting Guide, Ethereum appears to lead the ranking of blockchains most affected by crypto scams in the past year.
This study considered the most common scams, cumulative losses and vulnerable blockchains.
In this sense, Ethereum saw £576.6 million stolen, taking into account all the funds returned (£152.2 million), with losses of more than 605% compared to the blockchain average.
The report also adds that the crypto scam that has resulted in the biggest loss for the Ethereum blockchain is the one involving access control exploits. In this type, fraudsters exploit a vulnerability in the system to gain direct access to user credentials or data.
However, it seems that Ethereum is not the only blockchain most affected by crypto scams.
Ethereum and the ranking of the blockchain most affected by crypto scams in the past year
The report published a real ranking, with the top 10 blockchains with the highest losses in 2023.
After Ethereum, in fact, the Bitcoin Blockchain takes the podium with more than 209 million pounds, followed by Polygon with more than 98 million pounds stolen.
Right below the podium there are Centralized, Cardano and Binance. Here, the most common detected crypto scams were “access control exploit” for the first two and “retreat exit scam” for Binance, respectively.
In the last four positions of this ranking there was then Arbitrum with more than £63 million stolen, Avax with £15 million, Optimism with £14 million, and Heco with £6 million stolen.
So another ranking sees the top 5 biggest crypto scams in 2023 based on lost funds. Here, in the first place, there is the crypto scam “access control” that lost more than £665 million and the most affected blockchain is Ethereum again.
After that, the “rug pull” crypto scam showed a total loss of £110 million in 2023, with the most affected blockchain being Binance. In third place, the crypto scam “oracle issue” was identified, with more than £104 million stolen, mainly on the Polygon blockchain.
The “flash loan attack” and “phishing” are the crypto scams that managed to steal a whopping 77.5 million and 58.8 million pounds during 2023. The most affected blockchains are Arbitrum in the first case , and Ethereum for phishing.
How not to fall into traps
As cryptocurrencies grow in popularity, crypto scams are also experiencing strong growth. However, it is possible to protect yourself from scams by identifying warning signs.
In this regard, Zigmas Pekarskas, CEO of Smart Betting Guide, said:
“The most obvious sign is if someone taps to access your private information, such as security codes or login data. Do not share your personal information unless you are 100% sure that the request is safe, especially if you have been contacted randomly by text or email. Also, be wary of returns, discounts, or tokens that seem “too good to be true.” If you know that a cryptocurrency is particularly volatile, be careful before accepting investment support. Make sure you understand how cryptocurrencies and blockchains work so you can identify any inconsistencies that could hint at ulterior motives. Make sure you only work through trusted exchanges and always use a secure electronic wallet to store funds.”
In the special case of consent phishing, Eric Jardine, the cybercrime research lead at Chainalysis, also recently expressed his opinion and described the crucial aspects.
And indeed, Jardine described how the scammer in this crypto scam specifically chooses their victim (as in the case of romance scams), and builds a relationship with them to gain their trust. Once obtained, the scammer will be able to get the fraudulent transaction signed and approved.
According to Jardine, a solution to the problem should be that the crypto sector, and therefore the projects, should educate their users more, to protect them from cryptocurrency thieves.
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