The latest CertiK Web3 Security Report reveals that onchain security incidents resulted in $1.19 billion in losses during the first half of 2024, highlighting the urgent need for enhanced security measures.
The report indicates that phishing attacks and private key compromises were the primary causes, with phishing attacks alone causing nearly $498 million in losses.
In a written Q&A with Cointelegraph, CertiK co-founder Ronghu Gu emphasized the importance of multifactor authentication, such as two-factor authentication (2FA) and “security keys.”
He stated, “All wallets with significant funds should be interacted with using a hardware wallet or similarly secure and well-designed key management solution.”
The second quarter of 2024 witnessed the most significant security breach with the DMM Bitcoin attack, resulting in a loss of $304 million.
This incident is now among the most significant hacks in history. The Japanese crypto exchange was compromised, leading to the theft of 4,502.9 Bitcoin and prompting the platform to enhance its security measures to prevent future thefts.
Another notable incident involved the Turkish crypto exchange BtcTurk, which suffered a cyberattack targeting hot wallets and resulting in a $90 million loss.
Gu informed Cointelegraph that these breaches demonstrate that “attackers are still out there” testing the defenses of major crypto custodians.
He stressed the necessity of proactive measures and a reactive response team to handle incidents.
In response to the significant losses in the first half of 2024, the United States introduced and passed the FIT21 regulatory framework bill.
This bill aims to enhance consumer protections and support innovation in the crypto sector through a comprehensive digital asset regulatory framework.
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It received bipartisan support and is expected to create a safer, better-regulated environment for digital assets in the United States.
Gu noted that the FIT21 bill “will likely attract more institutional investors and drive greater compliance efforts and requirements across the industry.”
Despite the concerning findings of CertiK’s report, Gu explained that “the trend is not pointing downward.”
Although crypto hacks caused nearly $385 million in losses in May, exploits and hacks decreased by 54.2% in June.
PeckShield data indicates that $176.2 million was lost to crypto hacks in June, showing a significant reduction from May.
Gu advised that while these losses might be a part of the industry for now, users can take “simple measures” to protect themselves, such as implementing 2FA.
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