According to the latest report from blockchain security firm Immunefi, the cryptocurrency sector will face persistent challenges with hacks and scams in 2024.
The report highlights that although exploit losses have decreased monthly, the industry has seen more than $1.4 billion lost to 179 hacks and scams this year.
In October alone, losses amounted to $55.1 million, a significant reduction from the $126.9 million lost in September, marking a 56.6% drop. Nevertheless, Immunefi’s data highlights the continued vulnerability of the industry, as the cumulative losses remain substantial.
The October losses are particularly notable due to their concentration across several incidents. Seven specific exploits contributed to the month’s losses, with two major DeFi protocol hacks — Radiant Capital, which lost $50 million, and Tapioca DAO, which lost $4.4 million — accounting for most of the financial damage.
Crypto Sees Shifts In Security Strategies
Immunefi’s Head of Security, Gonçalo Magalhães, commented on the evolving security in the industry, observing that “projects are increasingly adopting robust security measures,” which include “more extensive audits, improved smart contract design, and the introduction of bug bounty programs.”
He noted a noticeable improvement in the maturity of security practices in the industry compared to two or three years ago. These measures above appear to be helping to reduce exploit risks, though hackers continue to exploit weak points where possible.
The BNB Chain emerged as the most targeted network in October, accounting for 50% of attacks. Meanwhile, Ethereum and Arbitrum collectively accounted for the remaining 50%, with each chain seeing 25% of the month’s incidents.
This distribution of hacks across these chains highlights how certain networks continue to attract higher targeting frequencies, with Ethereum-based ecosystems often at the forefront.
This persistent targeting suggests that although security measures have improved, high-value assets and DeFi ecosystems remain attractive to malicious actors.
Outlook For 2024: A Sector on Guard
As the year progresses, the crypto industry’s response to hacking attempts and fraud shows a mixed yet hopeful trend. Immunefi’s report notes that overall losses in 2024 now show a slight 1% decrease compared to the previous year, indicating a gradual improvement.
This trend and reduced monthly exploit levels suggest heightened security measures are taking effect. In addition to adopting more “robust” security strategies, projects increasingly focus on comprehensive audits and deploying decentralized insurance mechanisms to offset risks.
However, large-scale incidents like those affecting Radiant Capital and Tapioca DAO reveal substantial vulnerabilities. For instance, while centralized finance (CeFi) was free of incidents in October, DeFi remains a prime target.
However, the absence of CeFi losses this month may indicate attackers’ increased focus on decentralized protocols, leveraging their often rapid tactic development cycles.
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