The latest report from CertiK on Web3 Security has revealed that onchain security incidents have resulted in a loss of $1.19 billion in the first half of 2024. This significant loss highlights the urgent need for improved security measures.
The report emphasizes that the majority of these losses can be attributed to phishing attacks and compromises of private keys. Phishing attacks alone accounted for nearly $498 million in losses. In response to these alarming figures, Ronghu Gu, co-founder of CertiK, stressed the importance of implementing multifactor authentication, such as two-factor authentication (2FA) and “security keys.”
One of the notable security breaches in 2024 was the DMM Bitcoin attack, which occurred in the second quarter and resulted in a loss of $304 million. This attack has now become one of the most significant hacks in history. Another incident involved the Turkish crypto exchange BtcTurk, where a cyberattack targeting hot wallets led to a loss of $90 million. These breaches serve as a reminder that attackers are still actively targeting large crypto custodians.
In light of the losses incurred during the first half of 2024, the United States introduced and passed the regulatory framework bill FIT21. This bill aims to enhance consumer protections and foster innovation in the crypto sector through a comprehensive regulatory digital asset framework. With bipartisan support, the FIT21 bill is expected to create a safer and more regulated environment for digital asset exposure in the United States. Gu believes that this bill will attract more institutional investors and drive increased compliance efforts across the industry.
Although the CertiK report paints a concerning picture of the current state of Web3 security, there is some positive news. The number of exploits and hacks actually decreased by 54.2% in June compared to May. According to data from PeckShield, crypto hacks resulted in a loss of $176.2 million in June, a significant reduction from the previous month.
Gu acknowledges that while the losses may currently be a part of the industry, there are simple measures that users can take to protect themselves, such as implementing 2FA. Despite the challenges faced, it is crucial for individuals and organizations to remain vigilant and prioritize security in the rapidly evolving world of cryptocurrencies.
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