According to a report by blockchain security firm CertiK, losses due to hacks, exploits and scams totaled $32.2 million in October. These losses were spread across 38 incidents. No incident resulted in a loss of more than $7 million. The decrease in losses for the month of October is not due to a steady decline, but rather to the absence of major incidents during this period.

Quarterly review of cryptocurrency-related incidents

According to CertiK's third-quarter report, there were 79 incidents in July, 66 in August and another 39 in September. However, exploits peaked in September. Mixin Network suffered a $200 million loss when its cloud service provider was compromised. July had also seen significant damage, mainly attributable to losses caused by the Multichain MPC bridge.

Social media platforms as vectors for scams

The combination of social media's extensive reach and decentralized nature creates an ideal environment for scammers. The report reveals that almost half of all cryptocurrency-related scams were linked to social media platforms.

Variety of illicit activities on social media

These platforms offer a variety of opportunities for illicit activities. These range from pump-and-dump schemes to fraudulent practices such as pig butchering. Here are just a few examples:

• Pump-and-dump: groups organize a rapid increase in the price of a crypto-currency by encouraging their members to buy massively. They sell their own shares when the price rises and then abandon the investment. This process results in losses for other investors.
• Pig Butchering: scammers pose as investment experts promising high gains with minimal risk. They lure their victims into a complex investment cycle while stealing progressively.
• Impersonation scams: Using fake profiles and brand names to trick people into investing in fraudulent projects.

How can you protect yourself against cryptocurrency-related scams?

To avoid falling victim to social media scams, it's important to adopt a few precautionary measures. Here are a few tips:

• Checking the authenticity of profiles and brands: Don't blindly trust people who contact you online. Check their web presence, reviews of their services and the legitimacy of the projects they propose.
• Thorough research into investment opportunities: Don't invest impulsively. Spend time studying the company, its credentials, management team and business model.
• Avoid too-good-to-be-true gains: beware of offers that promise dazzling returns with minimal risk. The reality is often quite different.

Conclusion

The best way to protect yourself against cryptocurrency scams is to stay informed and vigilant. By knowing the common practices of scammers, you'll greatly reduce the chances of having to deal with losses. Finally, never forget that if an offer seems too good to be true, it probably is.