Losses From Crypto Back Pulls Faster Than DeFi Exploits In May: Beosin

The amount of cryptocurrency lost to “back pull” or “exit scams” ​​– in which founders suddenly get up and leave with investors’ money – exceeded the amount stolen from decentralized finance (DeFi) projects in May, a blockchain security firm revealed.

A June 1 Beosin report said total losses from carpet pulling and scams in May exceeded $45 million across six incidents.

Meanwhile, there were 10 attacks on DeFi (Decentralized Finance) protocols that netted only $19.7 million. The amount is down nearly 80% from April and losses from these types of exploits had been falling for two months, it added.

Carpet pulls faster than attacks: the total amount involved #withdrawal reached $45.02 million, surpassing losses from attacks

2/5

— Beosin Blockchain Security (@Beosin_com) June 1, 2023

The largest of such carpet draws was the $32 million crypto project Fintoch was said to have left on May 24. The $7.5 million attack on the DeFi platform Jimbos protocol was the largest attack last month according to Beosin.

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“Hackers and scammers are gradually shifting the target of their attacks from different project parties to regular users,” Beosin wrote.

It recommended crypto users “raise their anti-fraud awareness,” conduct due diligence on a project before investing, and learn how to better protect their crypto.

Beosin also warned against using shared or public cell phone charging devices as they could potentially be modified to inject malicious programs that could compromise private keys.

In April, the US Federal Bureau of Investigation (FBI) issued a similar warning that the use of free charging stations, such as those found in airports, should be avoided.

Avoid using free charging stations in airports, hotels or shopping malls. Bad actors have devised ways to use public USB ports to introduce malware and surveillance software into devices. Bring your own charger and USB cable and use a wall outlet instead. pic.twitter.com/9T62SYen9T

— FBI Denver (@FBIDenver) April 6, 2023

“Bad actors have devised ways to use public USB ports to introduce malware and surveillance software into devices,” the FBI’s Denver office tweeted on April 6. Instead, it recommended bringing a charger and a USB cable for use in a wall outlet.

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