83% of Investors Have Fallen Victim to Scams or Hacks – Chainplay

• 83% of cryptocurrency investors have experienced scams or hacks at least once, with average losses reaching $2,622 per person. 

• Crypto exchange users have lost over $27 billion due to hacks. 

• 64% of hacking activities targeted decentralized exchanges (DEXs); the financial damage on centralized exchanges (CEXs) was 27 times greater. 

• This highlights the vulnerabilities in both types of platforms and shows the need for stronger security measures.

Crypto investors have continued to receive attacks from scams, leading to unfavourable investment returns and loss in financial stability. Recent research shows that 83% of crypto investors have suffered scams or hacks, with average losses of $2,622 per person.

Prior to these findings, the study analyzed the top 300 cryptocurrency projects by market capitalization, taking data from CoinGecko. The researchers compiled each project’s official website and Twitter profile before generating 200 potential phishing websites and 200 fake Twitter accounts per project. The study then verified how many of these fraudulent sites and accounts were active and shows the prevalence of cyber threats targeting crypto investors.

Crypto Exchanges Under Siege As DEXs and CEXs Suffer Losses.

As per Chainplay and Storible’s research, crypto users lost $27 billion because of hacks, with DEXs suffering from attempts to breach them (64%). Equally, CEXs suffered greater losses, financially, 27 times more.  

Exchange hacks losses stand at almost $29 billion, with CEX users losing over $26.4 billion, DEX users over $800 million, and exchanges themselves over $1.6 billion. This shows that financially more risks come with centralized platforms as compared to decentralized ones.  

83% of Investors Have Fallen Victim to Scams or Hacks - Chainplay 3

Moreover, the research highlights the most notorious scam activities, such as impersonation on social media at 34%, exchange hacks at 21%, and phishing at 19%. These methods are most often used by scammers trying to defraud crypto investors, which makes security education fundamental for crypto participants.  

Crypto Investment Scams Suggest Stricter Security  

In the last decade, crypto-related crimes have brought over $30 billion in losses, with rug pulls being the most prevalent crime. Centralized exchanges (CEX) have emerged as the most targeted victims.

Because cryptocurrency transactions are decentralized and can be done anonymously, combating fraud alongside asset recovery becomes especially challenging. The new wave of scams and hacks further intensifies these risks, warranting the protection of investors even more. More sophisticated marketing alongside heightened investor vigilance is needed in the cryptocurrency sector.