In an ongoing technological arms race between cryptocurrency wallet providers and cybercriminals, neither side has gained a decisive advantage, according to Ledger's chief experience officer Ian Rogers.
"It will always be a cat and mouse game," Rogers explained, describing the continuous cycle of wallet companies implementing new security features while hackers develop increasingly sophisticated attack methods.
Despite advances in security technology, Rogers noted that basic scams remain highly effective, with many users still falling for simple tricks like sharing their 24-word recovery phrases with criminals. "Anyone who asks for your 24 words is a criminal," he warned.
Social media platforms have become a breeding ground for crypto scams, with fraudsters commonly responding to crypto-related posts offering to "help" via direct messages. The problem has escalated to the point where even prominent industry figures' accounts are being compromised - as seen when Ethereum founder Vitalik Buterin's Twitter account was hacked in September 2023, resulting in followers losing over $691,000 through a fake NFT giveaway.
The scale of crypto theft continues to grow, with hacks increasing 15% in 2024 compared to the previous year, resulting in losses exceeding $3 billion. A particularly concerning trend is the rise of "pig butchering" scams, which have cost Ethereum network users $5.5 billion across 200,000 cases in 2024. These sophisticated schemes involve long-term manipulation to convince investors to voluntarily transfer assets to fraudulent addresses.
Rogers compared the persistent nature of crypto scams to traditional fraud schemes, noting that "the cost of the attack is always commensurate with the size of the prize." As cryptocurrency values and adoption increase, both security measures and attack methods continue to evolve in parallel.
Industry experts recommend maintaining vigilance against phishing attempts on social media as a key defense strategy in protecting crypto assets.