Blockchain security experts predict that in 2024, crypto projects and investors will face a range of significant threats, including AI-powered phishing scams, BRC-20 exploits, and new vulnerabilities in smart contracts.
Despite a decrease in scam and hack-related losses from $4 billion in 2022 to $1.7 billion in 2023, Jesse Leclere, a blockchain analyst at CertiK, warns that scams are becoming more sophisticated.
Users are urged to stay vigilant against well-executed exploits.
Leclere emphasizes that phishing attacks, evolving in sophistication, will target not only individual users but also corporate systems, using tailored social engineering tactics for the crypto context.
The December 14 Ledger Connect exploit serves as a prime example of an advanced attack.
Generative AI is expected to play a crucial role in making phishing scams more nefarious, allowing hackers to automate operations and create convincing fake calls, videos, and messages to deceive potential victims.
Jenny Peng, a research analyst from 0xScope, also warns that AI could contribute to generating realistic “deep fakes” to trick crypto users.
Peng predicts that hackers will pay extra attention to the burgeoning BRC-20 ecosystem in 2024 due to a relative lack of security developments.
She points out the double-spend exploit that hit the BRC-20 UniSat wallet in early 2023 as evidence that the ecosystem needs to quickly improve its security infrastructure.
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Cross-chain bridges, a persistent concern for the industry, will continue to be problematic in 2024.
As the industry adopts cross-chain solutions for greater interoperability, these protocols become attractive targets for attackers.
Complex interactions between different protocols and chains can lead to vulnerabilities.
Notably, some of the largest crypto hacks have resulted from bridge exploits, including the infamous $650 million Ronin bridge hack.
Phil Larratt, director of investigations at Chainalysis, warns that bad actors will become more adept at avoiding detection in 2024. Illicit actors are expected to adopt more sophisticated tactics and techniques, especially as traditional organized criminals and financial crime actors increasingly embrace crypto.
To combat this trend, Larratt suggests the need for more intensive law enforcement investigations, increased training and knowledge sharing among law enforcement organizations, advanced fraud protection programs, and continued public-private sector partnerships.
As crypto evolves, so too must the strategies to counter emerging threats.
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