Cryptocurrency continues to be a hot target for cybercriminals, with over $1.1 billion lost in Web3 cybersecurity incidents in the first half of 2024, as reported by Certik, a blockchain monitoring firm. The data shows that there were 408 onchain security incidents during this period, resulting in an average cost of $2.9 million per incident. The median loss for victims was $230,784, showcasing the varying degrees of impact from these attacks.
Phishing attacks were the most common type of attack, accounting for 150 incidents and $497.7 million in losses. Private key compromises also led to significant losses, with 42 incidents resulting in $408.9 million lost. This highlights the ongoing vulnerability in key management practices within the Web3 ecosystem.
The most prevalent attack vectors in terms of volume and financial losses were phishing, code vulnerabilities, private key compromises, exit scams, price manipulation, and access control. These vectors collectively led to substantial losses for victims across different Web3 platforms.
Ethereum was identified as the most frequently targeted blockchain in the first half of 2024, with 222 incidents resulting in $315 million in losses. In contrast, Bitcoin only experienced one security incident during this period, resulting in the theft of 4,502.9 BTC worth $304 million due to a hack at the Japanese cryptocurrency exchange DMM Bitcoin.
The report also highlighted a significant increase in the value of losses from security incidents in H1 2024 compared to H1 2023, with a total of $1.84 billion lost in 2023. Despite a decrease in the number of incidents quarter-over-quarter, the value of losses in Q2 2024 rose by 37%. This discrepancy may be attributed to the fluctuating prices of cryptocurrencies like Bitcoin throughout the year.
Web3, a decentralized internet service powered by blockchain technologies and cryptocurrencies, offers an alternative to traditional centralized platforms. Decentralized finance (DeFi) platforms within the Web3 ecosystem have become prime targets for cybercriminals due to the potential for stealing large sums of crypto in a single attack.
The ease of cryptocurrency trading in markets like Dubai and Hong Kong has provided more opportunities for DeFi platforms, but enhanced security measures will be crucial for their sustained success. As the value of cryptocurrencies continues to rise, it is imperative for Web3 platforms to prioritize cybersecurity to protect users and assets from malicious actors.