A recent report by CertiK, a leading Web3 security firm, has revealed that a staggering $1.19 billion has been lost to onchain security incidents in the first half of 2024. The report highlights that most of the losses were attributed to phishing attacks and private key compromises, with phishing attacks accounting for almost $498 million.
The report’s findings are a stark reminder of the importance of robust security measures in the Web3 space. According to Ronghu Gu, co-founder of CertiK, multifactor authentication is crucial in preventing security breaches. “All wallets with significant funds should be interacted with using a hardware wallet or similarly secure and well-designed key management solution,” Gu emphasized in a written Q&A with Cointelegraph.
The report also highlights several notable security breaches, including the DMM Bitcoin attack, which resulted in the loss of $304 million. The Japanese crypto exchange experienced a breach that led to the theft of 4,502.9 Bitcoin, prompting the platform to enhance its security measures.
Another incident involving the Turkish crypto exchange BtcTurk resulted in a $90 million loss due to a cyberattack targeting hot wallets. Gu noted that these breaches demonstrate that attackers are still actively seeking to test the defenses of large crypto custodians.
The report’s findings are a wake-up call for the Web3 community, highlighting the need for proactive measures to prevent security breaches. Gu emphasized the importance of having a highly reactive response team in place to address incidents when they occur.
Amid the losses experienced in the first half of 2024, the regulatory framework bill FIT21 was introduced and passed in the United States. The bill aims to improve consumer protections and support crypto sector innovation through its comprehensive regulatory digital asset framework. Gu believes that the FIT21 bill will attract more institutional investors and drive greater compliance efforts and requirements across the industry.
Despite the concerning picture painted by the report, Gu notes that the trend is not pointing downward. According to PeckShield data, crypto hacks fell by 54.2% in June, with $176.2 million lost, a marked reduction from May. Gu emphasizes that simple measures, such as two-factor authentication, can be taken to protect oneself from security breaches.
The report’s findings serve as a reminder of the importance of prioritizing security in the Web3 space. As the industry continues to evolve, it is crucial that users and institutions take proactive measures to prevent security breaches and protect their assets.
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Source: Cointelegraph
