Blockchain security firms predict that major threats facing crypto projects and investors in 2024 include AI-powered phishing scams, exploits targeting BRC-20 (an experimental fungible token standard using ordinal inscriptions), and emerging vulnerabilities in smart contracts, according to a report by crypto industry portal Cointelegraph.
Although the 2023 losses of USD1.7 billion (~RM7.88 billion) due to scams and hacks represent an improvement from the USD4 billion (~RM18.4 billion) lost in 2022, Jesse Leclere, a blockchain analyst from CertiK, cautioned that scams are becoming more sophisticated, emphasising the need for users to stay highly vigilant against well-executed exploits.
Leclere highlighted the evolving sophistication of phishing attacks, suggesting that they are likely to target both individual users and corporate systems using social engineering tactics tailored to the crypto context. He cited the Ledger Connect exploit on December 14 as an example of an advanced attack.
Additionally, he pointed out that the use of generative AI in phishing scams could make them more nefarious, enabling hackers to automate operations and create convincing fake calls, videos, and messages.
Jenny Peng, a research analyst from 0xScope, expressed concern that AI could play a crucial role in generating increasingly realistic “deep fakes” to deceive crypto users.
She also warned that hackers may pay extra attention to the BRC-20 ecosystem in the coming year due to a relative lack of security developments.
Peng referred to a double-spend exploit targeting the BRC-20 UniSat wallet launched in early 2023 as an indication that the BRC-20 ecosystem needs to rapidly enhance its infrastructure to match Ethereum’s security standards.
