Crypto security remains cat-and-mouse game

Cryptocurrency security remains a constant battle between wallet providers and cybercriminals, with neither side gaining a lasting advantage.

Ledger Chief Experience Officer Ian Rogers described the situation as a “cat and mouse game,” where new security measures are continuously met with evolving scams.

Rogers noted that the most effective scams exploit human error, particularly the sharing of 24-word seed phrases.

“People give their 24-word phrases to people every day, so as long as that happens, then they are going to go for the low-cost tax,” he said.

Scammers often use social media to target victims, responding to crypto-related posts with offers of assistance to gain trust.

In September 2023, Ethereum (CRYPTO:ETH) co-founder Vitalik Buterin’s account was hacked to promote a fake NFT giveaway, leading to $691,000 in stolen funds.

Such incidents demonstrate how attackers leverage credibility to bypass security measures, mirroring traditional fraud tactics like phishing emails.

Crypto hacks increased by 15% in 2024, with over $3 billion stolen.

Pig butchering scams emerged as a major threat, costing Ethereum users $5.5 billion across 200,000 cases.

These schemes involve prolonged manipulation, tricking investors into transferring assets to fraudulent addresses.

While wallet providers like Ledger continue to improve security, education remains crucial.

Jason Jiang, Chief Business Officer of CertiK, emphasised that identifying phishing attempts, including unsolicited messages or phony freebies, can drastically lower risks.

“Anyone who asks for your 24 words is a criminal,” Rogers emphasised, stating that awareness is the best defense.