In 2023, there was a 28 percent increase in online attacks on small businesses, but this year, cybercriminals have shifted their focus back to targeting large organizations with valuable digital assets and cash. A recent report by Oxford University on the World Cybercrime Index (WCI) revealed that Russia, Ukraine, China, and the United States are the top countries with the highest cybercrime threat score. The number of significant hacks undertaken by cybercriminals from these countries has increased in 2024. May saw a series of high-profile hacks, with ransomware group RansomHub targeting top auction house Christie’s and internet service provider Frontier Communications.
RansomHub, a Russian-speaking hacker group, successfully hacked Christie’s ahead of the New York Auction Week, threatening to auction off sensitive personal information of its high net-worth clients on the dark web. Owned by French billionaire Francois Pinault, Christie’s is known for selling NFTs and high-priced artworks. The cyberattack on Christie’s was a significant blow to the prestigious auction house, which had accidentally exposed location data for hundreds of consigned works last year. Additionally, RansomHub also targeted Frontier Communications, a large Internet Service Provider based in Dallas, Texas.
One of the biggest hacks in May was carried out by the notorious cyber-criminal group ShinyHunters, which hacked Banco Santander and Ticketmaster/Live Nation. ShinyHunters managed to obtain sensitive user information, including names, addresses, email addresses, phone numbers, and payment card data from Ticketmaster/Live Nation. This information is being sold on the dark web for $500,000. Ticketmaster/Live Nation controls 70% of ticket sales and is currently facing a Department of Justice anti-trust lawsuit. These hacks pose a threat to digital asset owners, as they could lead to further cybercrime and potential privacy breaches.
The Australian government, as part of the Joint Chiefs of Global Tax Enforcement (J5), is working with the FBI and Ticketmaster to investigate the recent cyberattacks. The IRS has also reported an increase in tax evasion related to digital asset transactions. Taxpayers are reminded to report all earned income, including income from selling NFTs or token-gated event tickets, on their tax returns. The IRS has warned high-income taxpayers about potential tax traps, such as improper art donation deductions and fraudulent NFT schemes. In 2024, the IRS plans to increase audit efforts for high-income taxpayers, large partnerships, corporations, and individuals with digital asset accounts.
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