A recent report from MistTrack, the investigative branch of cybersecurity firm SlowMist, has revealed that private key leaks are the primary cause of cryptocurrency thefts in the second quarter of 2024. The leaks are attributed to improper practices such as storing private keys on cloud services like Google Docs, as indicated in the report released on June 2.
The report also cautioned against sending sensitive information through messaging platforms like WeChat, despite their employment of security measures like end-to-end encryption, as it increases the risk of information theft. According to MistTrack, hackers are using “credential stuffing” to access victims’ sensitive data, by using leaked account credentials to log into cloud storage and other services.
In addition, the report highlighted deceptive tactics employed by attackers, including posing as customer service agents and sending phishing links to victims via platforms like Discord. MistTrack advised users not to disclose their private keys or mnemonic phrases under any circumstances.
Fake wallets that mimic popular cryptocurrency applications were also identified as a leading cause of private key leaks, often found on third-party sites due to geographical constraints and other reasons. As an example, apkcombo, a Google Play Store alternative, offered a non-existent version of the imToken crypto wallet designed to steal user’s private keys.
Furthermore, the report mentioned a similar incident where a fake Phantom wallet managed to bypass Apple’s app store security measures and drained crypto assets from users who imported their private keys into the app.
The report also noted that phishing links on social media platforms and fraudulent schemes, particularly honeypot scams, were common causes of crypto theft in Q2 2024. Honeypot scams involve creating fake cryptocurrency projects to attract investors who are then unable to sell their holdings.
Finally, the report highlighted the significant impact of crypto scams and hacks, which have resulted in the loss of approximately $20 billion worth of assets between 2011 and March 2024. In June 2024 alone, hackers were able to steal $176.2 million worth of assets from crypto platforms.