What is the reason for most of the cryptocurrency thefts in Q2 2024? slow fog report

MisTrack, the investigative arm of cybersecurity firm SlowMist, believes that the leakage of personal keys is the primary reason behind cryptocurrency theft within the second quarter of 2024.

The report highlights quite a few cases of customers storing non-public keys or mnemonic phrases in cloud storage companies equivalent to Google Docs, Tencent Docs, Baidu Cloud and Shimo Docs.

Non-public key leak

It has additionally been discovered that some customers share non-public keys or mnemonic phrases with trusted associates by way of instruments equivalent to WeChat. Some even use WeChat’s image-to-text operate to repeat the mnemonic phrase right into a WPS spreadsheet, encrypt it and allow cloud companies. Additionally retailer them on the native laborious drive.

Whereas these measures seem to enhance info safety, they in the end drastically improve the chance of data theft. sluggish fog established Malicious entities usually make use of “credential stuffing” methods. This entails makes an attempt to entry accounts utilizing compromised login info obtained from on-line sources. As soon as profitable, the attacker can simply find and extract encryption-related materials.

Pretend wallets are one other main trigger of personal key leaks.

Secondly, phishing schemes are the second main reason behind theft. In some instances, victims are tricked by scammers pretending to be buyer assist representatives, convincing them to disclose their mnemonic phrase. In different instances, customers fall sufferer to misleading phishing hyperlinks on platforms equivalent to Discord, inadvertently getting into their non-public key particulars.

SlowMist has additionally noticed that phishing has led to many theft incidents, particularly within the second quarter of this yr, when low-profile customers clicked on malicious hyperlinks and commented on well-known challenge tweets.

The corporate’s safety workforce had beforehand established Practically 80% of the primary feedback on tweets from well-known challenge accounts have been attributed to phishing accounts. In addition they found Telegram teams promoting Twitter accounts, lots of which have been associated to the cryptocurrency business or influencers with various follower numbers and histories.

Balanced Scorecard (BSC) Troubled by Honeypot Schemes

The second quarter additionally noticed the emergence of main honeypot schemes, through which digital currencies appeared promising to traders however have been designed in order that they may not be bought as soon as bought.

SlowMist’s evaluation reveals that almost all of honeypot incidents reported this quarter occurred on Binance Sensible Chain (BSC). Scammers primarily create the phantasm of widespread participation by circulating these tokens amongst quite a few accounts and exchanges, thereby inflating transaction information.