Is Crypto Fraud Becoming an Industry? Cyvers reviews On-Chain threats from 2025

Cyvers found that botnets were the most organized and persistent threats, while access control attacks caused the most security incidents.

Recent findings from blockchain security experts have revealed that fraud activity in the crypto space is maturing on an industrial scale. This means that bad actors, hackers, and fraudsters are increasingly performing sophisticated social engineering activities to drain victims’ wallets.

The 2025 Web3 Security and Fraud Report from blockchain security firm Cyvers revealed a sharp rise in both crypto fraud and on-chain security incidents last year. The industry recorded 108 incidents related to fraud or security threats.

The State of Crypto Fraud in 2025

According to Cyvers, approximately 16 billion dollars in crypto assets were linked to fraudulent activity by 2025. The project included at least 140 crypto exchanges and trading venues, reaching an unprecedented scale across wallets, payment providers, and banking channels. Every major exchange has seen a large portion of their customers defrauded at least once.

Cyvers security systems detected more than 4.2 million fraudulent activities across 780,000 addresses, in approximately 19,000 active fraud networks. These fraudulent flows were mainly focused on assets such as Tether (USDT), ether (ETH), and USD Coin (USDC).

The blockchain security platform found that authorized fraud, particularly pig slaughtering schemes, was a systematic and persistent threat. Bad actors in these networks have used time-honored social engineering tactics and fake investment platforms to trick victims into withdrawing their wallets.

On-chain threats are emerging

While crypto fraud was the biggest driver of losses last year, security incidents were also a major contributor. The crypto industry lost 2.5 billion dollars to hacks in 2025, from $ 2.36 billion in 2024 and $ 1.69 billion in 2023.

Most of the financial damage (over $2.2 billion) recorded in security incidents came from large-scale access control attacks – compromised keys, permissions, and human error. About $292 million was lost due to smart contract and code vulnerabilities.

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It is worth mentioning that the biggest crypto theft in history happened last year, the incident of $ 1.5 billion in the crypto exchange Bybit. Cyvers said the attack, which was facilitated by supply chain compromise and legal signatures, did not appear to be a crime. Market experts predict that this could be the future of attacks – threats found in chains that seem familiar at first glance.

Meanwhile, Ethereum was the main target, accounting for 70% of all funds lost in all 33 major incidents. Other networks, such as BNB Chain, Bitcoin, and Sui, have also seen one-off events with high impact.