> For the complete documentation index, see [llms.txt](https://www.digitalnations.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://www.digitalnations.xyz/web3-overview/challenges/hacks-and-scams.md).

# Hacks and Scams

Note:  Data in this section last updated September 12th, 2022

Crime is an ongoing problem in the cryptocurrency space.  According to blockchain data firm [Chainalysis](https://go.chainalysis.com/2022-Crypto-Crime-Report.html), over $14B was stolen in 2021 across the broader ecosystem. 

                                          **Criminals Stole Over $14B in Cryptocurrencies in 2021**

<figure><img src="https://1848510576-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FAmJeQPCkTT9u0UZ8OI4U%2Fuploads%2FpJXOtFZJrjvwc5yMIDXe%2F53.jpg?alt=media&amp;token=8b61a61e-c297-48f1-a030-0a273746cb58" alt=""><figcaption><p>Source: <a href="https://go.chainalysis.com/2022-Crypto-Crime-Report.html">Chainalysis 2022 Crypto Crime Report</a></p></figcaption></figure>

Three of the most popular methods used by criminals include:

* **Malware**:  Malicious software that infiltrates a user’s computer, generally gaining access to his or her private keys
* **Code Exploits**:  Occur when coders find a vulnerability in a smart contract and leverage that to siphon funds to their own address
* **Scams**:  Utilize social engineering to deceive users and steal funds (e.g. a Ponzi Scheme)

Let’s take a deeper look into each of these categories below\... :point\_right: