Crypto New Year's Talisman: A Complete Guide to Fraud Prevention

The cryptocurrency market has provided investors with tremendous opportunities over the past year, but it has also faced severe challenges from scams and hacker attacks. At the beginning of the new year, these events have once again highlighted the importance of investors remaining vigilant, taking strong security measures, and using reliable tools. Here are some notable cases, crimes and tracking processes, as well as protective measures that investors can take in the new year to help crypto investments move forward steadily.

Recent notable crypto scams and hacks

1. DEXX hack (November 2024)

- Event Overview: Decentralized exchange aggregator DEXX suffered a major vulnerability attack, resulting in losses of over 20 million USD. The attack targets multi-chain wallets such as Solana.

- Crime process: Hackers exploited loopholes in private key management to gain access to user wallets, affecting more than 8,600 wallets.

- Tracking process: Blockchain security company SlowMist tracked the stolen funds by analyzing transaction patterns and identifying affected wallets.

- Result: DEXX announced the launch of a compensation program, emphasizing the importance of secure storage of private keys.

2. DMM Bitcoin hack (May 2024)

- Event Overview: Japan's DMM Bitcoin exchange lost $305 million due to private key leaks and address spoofing attacks.

- Criminal process: Attackers disguise as legitimate addresses, deceive wallet operators to transfer funds, and launder money through mixing services (such as CoinJoin).

- Measures to be taken:

- DMM suspended some services and promised to fully compensate users for their losses.

- The platform announced its closure following the incident and transferred user accounts to another exchange.

- Result: Despite promised compensation, recovery of funds was difficult, highlighting the importance of operational safety.

3. WazirX hack (July 2024)

- Event Overview: Indian exchange WazirX lost $234.9 million due to a multi-signature wallet vulnerability.

- Criminal process: Hackers take advantage of the difference between transaction display and actual authorization to deceive platform administrators into approving malicious transactions.

- Tracking process: Security companies suspect North Korea's Lazarus Group is involved and funds are being laundered quickly.

- Result: WazirX’s reputation was damaged and users were dissatisfied with the platform’s transparency.

4. Phishing and Rug Pull

- Case:

- Phishing: Attackers pretend to be legitimate wallets or exchanges and steal user login credentials.

- Rug Pull: Projects such as Squid Coin attract investment and then abscond with the funds.

- Lesson: Always verify the source of the URL, and do research on the project team and audit reports before investing.

5. Pig-killing scam

- Criminal process: By building trust, they tricked victims into participating in fake investments, resulting in losses of more than US$3.6 billion.

- Impact: Investors are reminded to be highly vigilant about investment opportunities that guarantee high returns.

Crime tracking and response process

Blockchain Forensics

Security firms such as Chainalysis, SlowMist, and PeckShield track the movement of stolen funds by analyzing transaction flows and wallet connections, and work with exchanges to freeze illicit assets.

Enforcement Action

In some cases, law enforcement agencies (such as the FBI) ​​are directly involved. For example, in a $230 million fraud case, the U.S. government arrested the suspect and recovered some of the assets.

Community and platform response

Platforms may issue bounties to incentivize the community to help recover funds and increase user vigilance through educational campaigns.

Investor Protection Measures

1. Use a secure wallet

- Hardware wallets: such as Ledger or Trezor, which protect assets by storing private keys offline.

- MetaMask: Provides phishing detection and powerful dApp integration capabilities.

2. Enable two-factor authentication (2FA)

Add an extra layer of security to your account and generate one-time codes with an authenticator app.

3. Monitor your account regularly

Check your account for any unauthorized transactions or setting changes to prevent unauthorized activity.

4. Due diligence before investing

- Use tools like Etherscan or Solscan to monitor the project’s team background and activities.

- Review safety audit reports and avoid high-risk projects.

5. Avoid oversharing

Never reveal your private keys, recovery phrases or wallet details under any circumstances.

6. Stay alert

Be wary of unsolicited links and messages, and avoid promises of high returns.

Recommended security software

1. Metamask Snaps: Customized security features that provide phishing detection and real-time alerts.

2. CertiK Skynet: monitors blockchain activity in real time and provides project security scores.

3. SlowMist EagleEye: Threat intelligence tool for phishing attacks.

4. Chainalysis KYT: real-time monitoring of transaction risks.

5. De.Fi Shield: Review token authorization and enhance wallet security.

summary

The high volatility and emerging nature of the crypto market make it a hotbed for scams and hackers. While blockchain analytics and security tools have significantly enhanced the industry's resilience, investors still need to take proactive steps to protect their assets. By staying sensitive to information, using reliable tools, and investing rationally, users can more safely seek opportunities in this dynamic field.