> 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

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="/files/Ysy2biTMzAxnd4PtzS5w" 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: