Following DeFi breaches, the second most common type of crypto attack was fraud, with 36 frauds occurring in 2022, an increase of over 140% from 2021.
New research by CoinJournal, based on available data around major breaches and fraud since 2012, found that crypto hacks and fraud reached a record high in 2022, with incidents up 27.66% from 2021.
The list of year-on-year changes of crypto breaches and fraud puts 2022 at the top, with 120 incidents worth a total of £1,866,240,500 – a 27.66% increase from 2021, which saw 94 incidents amounting to £4,037,707,250.
Although there were more incidents in 2022 (120 vs 94), there was a significant drop in the value of digital assets (£1,866,240,500 in 2022 vs £4,037,707,250 in 2021). The main reason behind this is that crypto entered a bear market in 2022. Digital assets fell from sharply from their all-time highs against fiat currencies.
Crypto frauds and breaches keep increasing
2020 was much calmer, with 31 incidents totalling £1,299,391,750 worth of digital assets lost to breaches and fraud. The year 2019 experienced 26 incidents worth £3,052,262,500. In 2018, incidents were 15 and were valued at £849,401,050. In 2017, incidents were 14, worth £563,360,450.
“2022 was the worst year for crypto fraud and breaches, with 120 different incidents occurring during the year. This was 26 more than the previous year, which equates to an increase of almost 28%”, said CoinJournal. “The most common crypto attack was DeFi breaches, happening 80 times in 2022 alone, accounting for over 66% of all incidents.”
Following DeFi breaches, the second most common type of crypto attack was fraud, with 36 frauds occurring in 2022, an increase of over 140% from 2021. The biggest fraud of 2022 was worth £53,940,000.
“The United States is the most commonly targeted country, with 13 hacks and breaches since 2011. The most recent was in July 2020 when hackers got into verified Twitter accounts and launched a fake donation campaign”, the report continued. “The most costly crypto scam was by Plus Token, where almost $3 billion worth of Bitcoin and Ethereum was stolen.”
BSC was the most stolen coin in 2022, with the currency being stolen a total of 50 times. This was a 72% increase from 2021 when it was stolen just 29 times. The second most commonly stolen coin was ETH at 33 times.
