Given the recent surge in cyberattacks targeting large organizations, including high-profile entities like Christie's and Ticketmaster, concerns regarding the release of sensitive digital asset information are warranted.

In 2023, online attacks on small businesses rose by 28%, indicating a concerning trend in cybercrime. However, this year has seen a resurgence in hackers targeting data-rich organizations with substantial financial resources. According to recent research from Oxford University, hackers from the top 10 countries ranked by the World Cybercrime Index (WCI) cybercrime threat score have carried out 20 significant hacks in 2024 alone.

One notable incident involves the Russian-speaking hacker group RansomHub, which successfully hacked Christie's, a top auction house, and Frontier Communications, a major internet services provider in the US. RansomHub is now threatening to auction off sensitive personal information of Christie's high net-worth clients on the dark web, posing a significant risk to data security and privacy.

However, the largest hack in May was attributed to the notorious cybercriminal group ShinyHunters, which targeted Ticketmaster/Live Nation, the world's largest event ticket seller. ShinyHunters obtained a vast trove of sensitive user information, including personal details and partial payment card data, which they are selling on the dark web for a hefty sum. Ticketmaster/Live Nation's reliance on digital assets for ticket sales and NFT ticketing adds another layer of complexity to the situation.

These hacks not only pose immediate threats to data security but also have broader implications for digital asset owners. The compromised information could facilitate further cybercrime and potentially expose sensitive taxpayer data to tax authorities. The Australian government, as part of the Joint Chiefs of Global Tax Enforcement (J5), is collaborating with Ticketmaster and the FBI to investigate the incident.

In response to the escalating threat of cybercrime, the Internal Revenue Service (IRS) has reported an uptick in tax evasion related to digital assets. Taxpayers are reminded of their obligation to report all income earned from digital asset transactions, including NFT sales and token-gated event tickets. Additionally, the IRS plans to intensify audit efforts targeting high-income taxpayers, large partnerships, corporations, and digital asset accounts in 2024.

As cyber threats continue to evolve, vigilance and proactive measures are crucial to safeguarding sensitive information and mitigating potential risks associated with digital assets.