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Losses from crypto scams and hacks surged by 300% last year, as compared to 2017

According to a recent report released by blockchain analytics company CipherTrace, about $1.7 billion in crypto were stolen or scammed over the course of the last year.

Hackers alone were able to get away with $950 million, that is, 300% more than in 2017. Notably, the report does not cover individual user scams: it focuses on cryptocurrency exchange exit scams, ICO scams and phony exchange hacks. The said schemes are responsible for siphoning another $725 million in 2018.

The report highlights only the figures about confirmed cases of hacks and scams, with real losses being much higher.

2017 saw many newbies entering the crypto space. Many of them had dreams of getting rich, and some did, in fact succeed in doing so. But much greater numbers of them missed the all-time-high due to greed or misunderstanding of the underlying market mechanics inflating the bubble. Additionally, newer users couldn’t be expected correctly delineate between trustworthy and non-trustworthy exchanges or even ICOs.

The report details nearly every known hack from 2018, including MapleChange. It’s worth a read for those interested in best security practices in cryptocurrency.