Top 3 Causes Of Crypto Theft Revealed By Leading Security Firm

This post was originally published on Bitcoinist

SlowMist, a leading blockchain security firm, has released its “2024 Q2 MistTrack Stolen Funds Analysis,” providing an in-depth look at the trends and tactics behind cryptocurrency thefts during the second quarter of 2024. Drawing from 467 reported incidents of stolen funds, the analysis pinpoints critical vulnerabilities within the ecosystem and offers detailed insights into the methods used by cybercriminals.

Private Key Leaks: The Primary Culprit

According to the SlowMist report, the most common cause of crypto theft is the mishandling of private keys and mnemonic phrases. Users’ tendencies to store these critical security credentials in easily accessible or insecure platforms have led to substantial losses. Specifically, the report details how many users store their keys on cloud storage services like Google Docs, Tencent Docs, Baidu Cloud, and Shimo Docs. It also mentions that some users compromise their security further by sharing these keys via messaging platforms like WeChat or even storing them on local hard drives with insufficient encryption measures.

The report clearly states: “Hackers often use ‘credential stuffing’ techniques, trying to log into these cloud services with databases of leaked account credentials found online.” This exposes users to significant risks as once hackers access these storage points, they can

Read the rest of this post, which was originally published on Bitcoinist.

Previous Post

Could a financial crisis end crypto’s bull run?

Next Post

Bitcoin Shows Strong Divergence from Equities as BTC Price Drops Under $60,000