What Are Crypto Attacks and How to Prevent Them: A Comprehensive Guide

Why Crypto security matters more than ever

Crypto attacks have become billion-dollar problems. Over $2.7 billion was stolen from CeFi, DeFi, and the broader Web3 ecosystem through security breaches in 2024 alone. As crypto adoption speeds up and blockchain technology permeates everything from finance to gaming, the threats have increased simultaneously.

Access control attacks cost over $1.7 billion, phishing frauds cost around $600 million, and smart contract vulnerabilities resulted in another $255 million in losses. From private key theft to malicious airdrops, the methods are becoming more sophisticated, and no one, whether an investor or builder, is immune.

In this article, we'll discuss the most common types of crypto attacks in 2025, how they work, and, most importantly, what you can do to protect yourself. Whether you're a crypto owner, building a dApp, or venturing into the Web3 universe, this digital asset security information and Web3 security tips are essential for protecting your digital future.

What are Crypto Attacks?

Crypto scams are harmful attempts to steal, exploit, or destroy digital assets by targeting users, blockchain protocols, or the underlying infrastructure. These attacks vary from technical breaches, such as infiltrating smart contracts, to psychological tricks, like phishing crypto scams that deceive users into giving up their private keys.

In contrast to traditional cybersecurity threats, crypto attacks frequently pursue immediate financial gain. The stakes are significantly higher due to the irreversible nature of blockchain transactions. Once an attacker empties a wallet or takes advantage of a contract, the pilfered assets are typically lost forever.

Moreover, it should be noted that "crypto attacks" is a broad term that includes various types of scams and frauds. Within this category, you'll find multiple methods. Some attackers exploit weaknesses in blockchain code, known as protocol exploits. Others target people with fake websites, phishing emails, or fake airdrops. Similarly, rug pulls, where developers disappear after collecting money for a bogus project, are now common, especially in fast-changing memecoin markets.

As the crypto space evolves, so do the methods of attack. What used to be simple scams are now more complex operations, hitting everything from individual wallets to large decentralized finance (DeFi) protocols. 

Understanding how to prevent crypto attacks, the different types of crypto attacks, and some tips for mitigating them is vital for protecting yourself as an investor, developer, or Web3 project founder. This knowledge is the first step toward creating a safer digital presence.

The Top 4 Crypto Attacks Shaping the Security Landscape

The crypto industry has always changed quickly, but in 2024, it turned into a battleground. As more people joined, so did the number and scale of crypto scams and attacks, leading to billions of dollars lost by individuals, startups, and major platforms. Notably, these incidents were not random; they targeted the same vulnerabilities repeatedly.

The four major attack types that dominated headlines, access control exploits, phishing scams, smart contract vulnerabilities, and rug pulls, reveal just how broad and evolving today’s threat landscape has become. Each targets a different layer of the cryptocurrency ecosystem, ranging from personal wallets to decentralized finance (DeFi) protocols and non-fungible token (NFT) launches.  

Follow along as we break down how they work, highlight real-world case studies and losses, and share practical blockchain attack prevention and digital asset security strategies you can use right now.

Access Control Exploits

Topping the list, access control crypto failures were responsible for over $1.7 billion in stolen assets in 2024. These breaches typically involved compromised private keys, poorly configured multisig wallets, hijacked domain names (DNS attacks), or insecure storage backups. Incidents like the DMM Exchange hack and the PlayDapp breach have proven that even well-known brands are not immune when security fundamentals are overlooked.

Prevention Tip: Store critical assets in cold wallets, implement strong multisig authorization, and adopt best practices like the CryptoCurrency Security Standard (CCSS) for key management.

Phishing Attacks

Phishing scams, often dismissed as “basic” threats, caused over $600 million in direct losses last year. These attacks have evolved, using fake airdrop links, poisoned wallet addresses, and malicious token approvals to steal funds. One victim reportedly lost $129 million after unknowingly sending funds to a poisoned address that looked almost identical to the correct one.

Prevention Tip: Always verify wallet addresses manually, ignore unsolicited links, and double-check transactions before signing.

Smart Contract Vulnerabilities

Even smart contracts, which are supposed to automate trust, can be exploited if not built carefully. Vulnerabilities, such as reentrancy bugs, flawed oracle logic, and unchecked upgrade patterns, led to an estimated $255 million in losses in 2024. The Penpie protocol hack, which drained $27 million, highlighted the high cost of even minor coding errors.

Prevention Tip: Conduct rigorous third-party audits, launch bounty programs for white-hat hackers, and apply secure upgrade patterns in your smart contracts.

Rug Pulls and Memecoin Scams

The memecoin boom created new opportunities and new pitfalls. Scammers exploited platforms like pump.fun on Solana to launch fake tokens, hyping them with social media buzz and celebrity endorsements. More than $122.5 million vanished in rug pulls during Q2 2024 alone, with meme tokens like JENNER, JASON, and HAWK being among the most notorious.

Prevention Tip: Be skeptical of anonymous developer teams. Thoroughly research any project before investing, and approach token presales with extreme caution, no matter how tempting the hype may be.

How Crypto Attacks Happen: Real-World Examples from 2024

Understanding the theory behind crypto attacks is useful. But seeing how they unfold in the real world gives a sharper picture of the risks and how easily even experienced users can be caught off guard. Here's a closer look at how each major attack type played out in 2024.

Access Control Exploits: The DMM Bitcoin Hack

In May 2024, DMM Bitcoin, a cryptocurrency exchange in Japan, suffered a serious security breach, resulting in the loss of over $305 million worth of Bitcoin. North Korean hackers related to the Lazarus Group carried out the attack. They used social engineering by pretending to be recruiters on LinkedIn to target an employee at Ginco, a wallet provider for DMM. The employee fell for the trick and ran harmful code, which gave the hackers access to DMM's wallet management system.

This kind of breach exploited human trust instead of technical weaknesses. By targeting just one employee, the attackers could control essential systems.

To avoid similar cryptocurrency security threats, companies should enforce strict access control crypto methods, provide regular security training for employees, and use multi-factor authentication to protect sensitive systems. This, among other things, enhances fast crypto threat detection, which helps avoid similar crypto attacks.

Malware-Driven Authorization Fraud: The Bybit Heist

In February 2025, Bybit, a major Dubai-based crypto exchange, became the target of the largest crypto theft in history, losing approximately $1.46 billion in digital assets. According to Elliptic and later confirmed by the FBI, the attack was carried out by North Korean hackers.

The attackers deployed sophisticated malware to manipulate Bybit’s internal authorization processes. By faking legitimate transactions, the malware tricked the exchange’s systems into approving transfers that funneled assets directly to the hackers. Within minutes, stolen tokens were swapped for Ether through decentralized exchanges to prevent them from being frozen.

This wasn’t a brute-force hack; it was a carefully engineered deception, executed at a system level. From there, the attackers rapidly laundered the funds using 50 wallets, cross-chain bridges, and privacy services like eXch, Cryptomixer, and Wasabi Wallet.

To defend against similar cryptocurrency security threats, companies must adopt stronger transaction validation protocols, monitor internal authorizations in real time, and deploy advanced threat detection tools like Extractor to catch anomalies before they escalate.

Phishing Attacks: The $72 Million Address Poisoning Scam

In May 2024, a crypto user fell victim to an address poisoning scam, resulting in a loss of 1,155 wrapped Bitcoin, valued at approximately $68 million. The attacker sent a small transaction from an address resembling one the victim had previously interacted with. When the victim copied the address from their transaction history for a large transfer, they inadvertently sent funds to the attacker's address. 

In an address poisoning scam, attackers exploit users' reliance on transaction histories, inserting deceptive addresses that closely mimic legitimate ones.​

This is a straightforward yet effective method employed by scammers in cryptocurrency scams. Therefore, always verify addresses manually before completing transactions, and avoid copying addresses from transaction histories without conducting thorough checks.

Smart Contract Vulnerabilities: The Penpie Protocol Exploit

In September 2024, the Penpie protocol lost about $27 million due to an attack. The attacker used a weakness called a reentrancy vulnerability in the batchHarvestMarketRewards function. This allowed them to call the function repeatedly and drain funds.

The vulnerability slipped through audits because the function was initially intended for admin use only, but later became publicly accessible. Reentrancy attacks occur when a function is called multiple times before the previous call finishes, resulting in unexpected issues and potential loss of funds.

To avoid reentrancy attacks and similar cryptocurrency security threats, developers should follow secure coding practices, such as the checks-effects-interactions pattern, and conduct thorough audits, especially after modifying access controls.

Rug Pulls and Memecoin Scams: The Pump.fun Phenomenon

Pump.fun, launched in early 2024, became a hotspot for memecoin creation on the Solana blockchain. While it democratized token creation, it also facilitated numerous rug pulls. In one notable case, a 13-year-old developer created a token, hyped it through live streams, and then sold off his holdings, causing the token's value to plummet and netting him $30,000. ​

In these types of crypto attacks, developers often exploit market hype to artificially inflate token values, then sell their holdings and leave investors with devalued assets. It is essential to exercise caution when considering new tokens, particularly those that lack transparency. Conduct thorough research on the development team, analyze the tokenomics, and be wary of projects that experience sudden and unexplained spikes in hype.

Staying ahead of crypto attacks in 2025 requires proactive security measures tailored to both individual users and Web3 projects. Below is a comprehensive guide outlining practical strategies to mitigate risks associated with access control crypto exploits, phishing crypto scams, smart contract vulnerabilities, and rug pulls.

How to Prevent Crypto Attacks: Crypto Attack Prevention Tips for Users and Projects

Preventing crypto hacks and staying ahead of crypto attacks in 2025 requires proactive security measures tailored to both individual users and Web3 projects. The following is a comprehensive guide outlining practical crypto attack prevention or blockchain attack prevention strategies to mitigate risks associated with access control exploits, phishing scams, smart contract vulnerabilities, and rug pulls.​

Prevention Tips for Individual Users

1. Strengthen Wallet Security

• One crypto attack mitigation method is to use cold storage solutions, such as hardware wallets like Trezor or Ledger, for long-term asset storage.
• Enable two-factor authentication (2FA) using authenticator apps rather than SMS.
• Avoid storing private keys or seed phrases in cloud services or on internet-connected devices.

2. Vigilance Against Phishing Crypto Scam Attempts

• Manually enter URLs for crypto platforms; avoid clicking on links from unsolicited messages.
• Double-check wallet addresses before transactions to prevent address poisoning scams.
• Be cautious of unexpected airdrops or token approvals; verify legitimacy through official channels.

3. Conduct Thorough Research

• Investigate projects and tokens before investing; look for transparent teams and clear use cases.
• Be cautious of anonymous developers and projects that lack verifiable information.
• Avoid participating in presales or investments that promise guaranteed returns.

4. Stay Informed

• Regularly update yourself on emerging threats and security best practices.
• Follow reputable sources and communities that discuss crypto security. 

Prevention Strategies for Web3 Projects

1. Implement Robust Access Controls

• Adopt multi-signature (multisig) wallets to distribute transaction approval authority.
• Employ hardware security modules (HSMs) for secure key management.
• Regularly audit and update access permissions to critical systems and wallets.

2. Secure Smart Contract Development

• To ensure blockchain attack prevention, conduct comprehensive audits of smart contracts before deployment.
• Engage with white-hat communities for vulnerability assessments.
• Implement upgradeable contract patterns cautiously, ensuring security is not compromised.

3. Enhance Real-Time Monitoring

• Utilize platforms like the Extractor Crypto Security App for continuous on-chain activity monitoring, real-time crypto monitoring, and threat detection.
• Set up automated alerts for suspicious activities to enable swift incident response and swift crypto threat detection.
• Integrate anomaly detection systems to identify and proactively mitigate potential exploits.

4. Foster Transparency and Community Trust

• Maintain open communication channels with users regarding security measures and incidents.
• Publish audit reports and security assessments to build credibility.
• Encourage community feedback and participation in security initiatives.

Final thoughts: Stay Smart, Stay Secure

This article has discussed the critical question, “What are crypto attacks?” and revealed that crypto security isn’t just about tools or code, it’s a mindset. The most successful investors and builders treat safety as a daily habit, not a reaction to headlines. In a fast-moving space like Web3, staying one step ahead means questioning what you click, reviewing what you sign, and constantly learning how threats evolve.  

Most crypto attacks aren’t inevitable, but they can be prevented. With a combination of smart practices and real-time tools like the Extractor App, you can minimize your exposure and act quickly when things don't feel right.

Stay sharp. Stay skeptical. And most importantly, make security second nature—not just something you think about after it’s too late.