In response to the newest 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 greater than $1.4 billion lost to 179 hacks and scams this 12 months.
In October alone, losses amounted to $55.1 million, a big 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, because the cumulative losses remain substantial.
The October losses are particularly notable resulting from 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 many of the financial damage.
Crypto Sees Shifts In Security Strategies
Immunefi’s Head of Security, Gonçalo Magalhães, commented on the evolving security within 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 within the maturity of security practices within the industry in comparison with two or three years ago. These measures above seem like helping to scale back exploit risks, though hackers proceed to exploit weak points where possible.
The BNB Chain emerged as probably 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 proceed to draw higher targeting frequencies, with Ethereum-based ecosystems often on 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
Because the 12 months 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 in comparison with the previous 12 months, indicating a gradual improvement.
This trend and reduced monthly exploit levels suggest heightened security measures are taking effect. Along with adopting more “robust” security strategies, projects increasingly give attention to comprehensive audits and deploying decentralized insurance mechanisms to offset risks.
Nevertheless, large-scale incidents like those affecting Radiant Capital and Tapioca DAO reveal substantial vulnerabilities. As an example, while centralized finance (CeFi) was freed from incidents in October, DeFi stays a major goal.
Nevertheless, the absence of CeFi losses this month may indicate attackers’ increased give attention to decentralized protocols, leveraging their often rapid tactic development cycles.
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