According to the latest CertiK Web3 Security Report, the cryptocurrency industry lost $1.19 billion due to on-chain security incidents in the first half of 2024.
Phishing Attacks Lead the Charge
Phishing attacks emerged as the primary culprit, accounting for nearly $498 million in losses.
Source: CertiK
Ronghu Gu, co-founder of CertiK, emphasized the importance of multifactor authentication and hardware wallets for protecting funds. “All wallets with significant funds should be interacted with using a hardware wallet or similarly secure and well-designed key management solution,” Gu stated.
Notable incidents in 2024 included the DMM Bitcoin attack, which resulted in a $304 million loss, and the BtcTurk cyberattack, which stole $90 million.
However, amidst these security challenges, there’s a glimmer of hope on the regulatory front. The introduction and passage of the FIT21 bill in the United States aim to improve consumer protections and support innovation in the crypto sector.
This comprehensive regulatory framework is expected to create a safer environment for digital asset exposure and potentially attract more institutional investors.
Gu suggests that while the magnitude of losses might be “just a part of the industry” for now, simple measures like two-factor authentication (2FA) can enhance user security.
Additionally, PeckShieldAlert has released a semi-annual report. The report highlights that 2021 H1 witnessed 200+ major hacks. The data shows that $1.56 billion was lost. Providing a slight relief, $319 million was recovered.
#PeckShieldAlert 2024 H1 witnessed 200+ major hacks in the crypto space, resulting in ~$1.56b in losses, w/ $319m recovered.
This marks a significant 293% increase from the same period in 2023 (w/ losses amounted to $480m).#DeFi protocols remained primary targets, accounting… pic.twitter.com/A8d358xzLW— PeckShieldAlert (@PeckShieldAlert) July 3, 2024
PeckShield also highlighted that 20+ public chains experienced major hacks. Ethereum and BNB Chain witnessed 31.3% of the total number of hacks. Arbitrum follows closely, with 12.5%.
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