Atlas VPN’s analysis finds that theft within decentralized finance networks is taking in more money than phishing and ransomware attacks.
Criminals are modernizing classic investment scam tactics and bringing them to the world of DeFi where there are no rules or regulations to protect investors. Atlas VPN analyzed financial hacks over the last two-and-a-half years and found that DeFi hacks represent 76% of all major hacks for the first half of 2021. In 2020, that type of hack represented only 25% of the total.
The problem has jumped from basically zero dollars lost to DeFi hacks in 2019 to $129 million in 2020 and $361 million in the first half of this year. In 2020, DeFi hacks took in $129 million of the $516 million lost to hacks that year. So far this year, phishing, ransomware and other cyberattacks are responsible for only 24% of money lost to these crimes and DeFi attacks have become the most common scam. Atlas VPN crunched data from the Cryptocurrency Crime and Anti-Money Laundering Report published this month by CipherTrace.
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DeFi is shorthand for decentralized finance, a system that makes financial products available on a public decentralized blockchain network….