Data shows crypto hacks and fraud in 2021 on track to new record high

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Crypto hacks and scams aren’t new to crypto, but whenever they happen they always come as a shock to investors. Especially the victims of these attacks. Bull markets always seem to come with an increased number of attacks. So, with a bull market raging for most of the year, 2021 has certainly had its fair share of attacks, despite just entering its ninth month of the year.

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These attacks have accelerated with the recent wave of crypto. Prices have risen across the board and it seems that this has been a signal for attackers to step up their operations. This could be in part due to the high prices of cryptocurrencies bringing much higher returns on their attacks. Regardless, attacks in 2021 have increased and data shows this year’s number will most likely surpass last year’s record.

Crypto attacks accelerated in 2021

Crypto hacks and scams had previously hit a record high in 2020. With a total of 32 cases identified in 2020, it was the year with the highest number of hacking and fraud incidents in the crypto market. In just eight months, 32 cases of hacking and fraud were identified in 2021. With six months to the end of the bull rally, more of these attacks can be expected to occur before the end of the year. .

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Since 2017, the number of breaches has steadily increased every year, according to an analysis by Crypto Head. 2017 marks the start of one of the most memorable bull races in the crypto space. It is therefore not surprising that there has been an increase in the number of attacks compared to the previous year. In 2016, there were only 5 identified cases of crypto hacking and fraud. But that number rose to 21 the following year in 2017.

With four months to go and the ever-increasing DeFi exploits, the number of attacks in 2021 could very well exceed 38. These hacks and breaches are getting even more sophisticated. Attackers are now developing tools that make their attacks more difficult to detect and trace.

The 2017 attacks took the biggest loot

On average, in 2017 alone, attackers took home an average of $ 223.5 million. The total number of 21 attacks for the year resulted in a balance of $ 4.7 billion stolen in crypto hacks and frauds. Set the record for the highest amount stolen in a single year.

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Despite a higher number of attacks, the 38 cases identified in the 2020s totaled around $ 1.8 billion. This amount has already exceeded in 2021 by at least one billion. So far, the 32 combined attacks from 2021 have reached a value of $ 2.9. The Poly Network attack that took place this year amounted to $ 610 million. Which makes it the biggest DeFi heist in history.

These attacks have mainly focused on the best coins in the crypto market, which incidentally also provide the most liquidity. About a third of these breaches targeted the main cryptocurrency, bitcoin. Ethereum comes in second with 12.8%. Unknown coins are around 9.2%, while ERC-20 tokens have been targeted 7.4% of the time.

Total Crypto Market Cap Now Trading At $ 2.29 Trillion | Source: Crypto Total Market Cap on TradingView.com Featured image from iStock, chart from TradingView.com

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