According to Beosin, a blockchain security firm, hackers lost a whopping $356 million to crypto-related scams in November 2020. During the month, the firm tracked an alleged 11 cryptocurrency hacks and phishing scams, as well as four “rug pulls” events — exit scams in which a seemingly legitimate crypto project is exploited for personal gain.
The funds reportedly stolen largely from exchanges such as KuCoin and Uniswap, as well as private wallets. Beosin also found that rookie traders are increasingly being targeted by malicious actors. Nearly half of the fraudulent activities were reportedly targeted at traders looking to make quick money by investing in DeFi protocols.
In addition, the firm also highlighted the rise of decentralized finance (DeFi) protocols, which are creating new security risks for investors. The report went on to conclude that “as the value, amount, and types of cryptocurrency grow, the blockchain transaction security sector must also survive in order to protect users from such increasingly sophisticated hacks and scams.”