The year 2024 has recorded unprecedented losses in the cybersecurity landscape. By the end of Q3, they reached $2.11 billion in total, surpassing all the losses from 2023, Cyvers' report shows.

The year has witnessed a sharp increase in hacking incidents. This highlights a growing threat landscape that necessitates immediate attention, as shown by the significant breach of WazirX and DMM Bitcoin exchange.

Cybersecurity Losses Surge

In the first three quarters of 2024, losses have already exceeded the total for 2023. Key statistics illustrate this trend: from January to September 2023, losses amounted to $1.23 billion, while the total for January to December 2023 was $1.69 billion.

The losses from January to September 2024 represent an approximately 72% increase compared to the same period in the previous year. Additionally, hacking incidents in centralized finance (CeFi) entities have surged by nearly 1,000%. Losses from wallet and custodian breaches have almost doubled. Conversely, losses from decentralized finance (DeFi) platform hacks have decreased by 25%.

CeFi Vulnerabilities: WazirX and DMM

CeFi platforms have experienced a dramatic rise in hacking incidents. The year has seen a 984% year-on-year increase in hacks, driven primarily by several high-profile attacks. In Q2 2024, centralized exchanges reported losses of approximately $401 million due to five significant attacks.

The DMM Bitcoin exchange breach accounted for $305 million of this total, marking it as one of the largest centralized exchange breaches of the year. Other affected platforms included BtcTurk, Lykke, Rain Exchange, and FixedFloat. This increase in vulnerabilities underscores the need for improved access controls and regulatory oversight.