Crypto Prices Surge, Attracting Cybercriminals Who Net $1.7 Billion in 2023
The rapid rise in cryptocurrency prices has not only caught the attention of investors but also cybercriminals looking to cash in on the digital gold rush. According to a recent report by cybersecurity firm SonicWall, these cybercriminals managed to net a staggering $1.7 billion from crypto heists in 2023 alone.
One of the tactics being employed by hackers is known as “cryptojacking.” This occurs when a hacker gains control of an individual’s computer, transforming it into a mining machine to generate new cryptocurrencies like Bitcoin, without the victim’s knowledge. With soaring prices, this method has become even more lucrative for cybercriminals.
The leading cryptocurrency, Bitcoin, which had previously reached an all-time high of $69,000 in November 2021 before experiencing a significant drop to just above $16,000 in 2022, has made an impressive recovery and set a new high.
Despite the decrease in stolen funds compared to the previous year, where cybercriminals managed to collect around $3.4 billion, the number of major hacks remained consistent at 160. The decline in stolen funds can be attributed to lower crypto prices and reduced liquidity on decentralized finance (DeFi) platforms.
SonicWall’s annual cyber threat report highlighted an alarming increase of 659% in cryptojacking attacks from 2022 to 2023, with a staggering one billion such attacks reported last year. North America and Europe were hit the hardest, experiencing increases of 596% and 1,046% respectively. These attacks occur when hackers covertly use victims’ computers to mine cryptocurrency, resulting in reduced computer performance and elevated electricity bills due to the high energy consumption associated with crypto mining. Once the cryptojacker successfully mines their share of cryptocurrency, it becomes indistinguishable from legitimate mining.
While authorities have been slow to respond to the growing threat of cryptojacking, there have been some notable developments. In January, Ukrainian police, with the assistance of Europol, made a high-profile arrest of an alleged cryptojacker. Authorities suspect that this individual illicitly mined cryptocurrencies worth a staggering $2 million.
Fortunately, there is hope on the horizon for improved cybersecurity measures. In 2024, industry experts predict advancements in law enforcement’s ability to track and trace hacked and stolen funds, providing better cyber controls and protection for the crypto industry.
As the crypto market continues to expand, it is crucial for investors and individuals to remain vigilant and implement robust security measures to protect their assets from cybercriminals seeking to capitalize on the crypto frenzy.
Analyst comment
Neutral news.
As an analyst, the market can expect increased efforts to combat cryptojacking and improve cybersecurity measures in response to the surge in cybercriminal activity. This will provide better protection for the crypto industry and enhance investor confidence.
