Public discussions about cryptocurrency fraud often focus on phishing messages, fake investment platforms and scams promoted through social media. But a new analysis by an Israeli blockchain intelligence company suggests that the biggest financial losses increasingly come from a different type of attack: criminals gaining direct access to victims’ digital wallets.

According to an analysis of 1,034 cryptocurrency fraud cases conducted by Lionsgate Intelligence Network, wallet compromises accounted for 34.5% of cases involving losses of more than $1 million, nearly twice their share across the company’s broader dataset.