Ethereum at the forefront among the blockchains most affected by crypto scams

A new report reveals that Ethereum has been the most affected blockchain by crypto scams in the last year, with a value of £576.6 million stolen.

Ethereum is the blockchain most affected by crypto scams

According to an analysis of the REKT database, by Smart Betting Guide, it seems that Ethereum is leading the ranking of the most affected blockchains by crypto scams in the last year.

This study has taken into account the most common scams, cumulative losses, and vulnerable blockchains.

In this sense, Ethereum has seen £576.6 million stolen, taking into account all the funds returned (£152.2 million), with losses exceeding 605% compared to the average of the blockchain.

The report also adds that the crypto scam that has resulted in the highest loss for the Ethereum blockchain is the one involving access control exploits. In this type, scammers exploit a vulnerability in the system to gain direct access to user credentials or data.

Apparently, however, Ethereum doesn’t seem to be the only blockchain most affected by crypto scams. 

Ethereum and the ranking of the most affected blockchain by crypto scams in the last year

The report has published a real ranking, with the top 10 blockchains with the highest losses in 2023. 

After Ethereum, in fact, the Bitcoin Blockchain takes the podium with over 209 million pounds, followed by Polygon with over 98 million pounds stolen.

Right below the podium, there are Centralized, Cardano, and Binance. Here, the most common detected crypto scams were respectively “access control exploit” for the first two and “rug pull exit scam” for Binance.  

In the last four positions of this ranking, there are then Arbitrum with over £63 million stolen, Avax with £15 million, Optimism with £14 million, and Heco with £6 million stolen. 

Another ranking, then, sees the top 5 biggest crypto scams in 2023, based on funds lost. Here, in first place, there is the crypto scam “access control” which has seen more than £665 million lost and the most affected blockchain is once again Ethereum. 

Following, the crypto scam of “rug pull” saw a total loss of £110 million in 2023, with the most affected blockchain being Binance. In third place, the crypto scam “oracle issue” was identified, with over £104 million stolen, mainly on the Polygon blockchain. 

The “flash loan attack” and “phishing” are the crypto scams that managed to steal a whopping 77.5 million and 58.8 million pounds during 2023. The most affected blockchains are Arbitrum in the first case, and Ethereum for phishing.

How not to fall into traps

As cryptocurrencies grow in popularity, crypto scams are also experiencing a strong growth. However, it is possible to protect oneself from scams by identifying warning signs. 

In this regard, Zigmas Pekarskas, CEO of Smart Betting Guide, stated:

“The most obvious sign is if someone is typing to access your private information, such as security codes or login data. Do not share your personal information unless you are 100% sure that the request is secure, especially if you have been contacted randomly via SMS or email. Also be wary of returns, discounts, or tokens that seem “too good to be true.” If you know that a cryptocurrency is particularly volatile, be cautious before accepting investment support. Make sure you understand how cryptocurrencies and blockchains work so that you can identify any discrepancies that may allude to ulterior motives. Make sure to only operate through reliable exchanges and always use a secure electronic wallet to store funds.”.

In the special case of approval phishing, recently Eric Jardine, the Cybercrime Research Lead at Chainalysis, has also expressed his opinion, describing the crucial aspects.

And indeed, Jardine has described how in this crypto scam, the scammer specifically chooses their victim (as in the case of romance scams), building a relationship with them to gain their trust. Once gained, the scammer will be able to get the fraudulent transaction signed and approved. 

According to Jardine, a solution to the problem should be that the crypto sector, and therefore the projects, should educate their users more, in order to protect them from cryptocurrency thieves.