According to the latter report from blockchain security company Immunefi, the cryptocurrency sector will face continued challenges with hacks and scams in 2024.
The report highlights that although operating losses have decreased month-on-month, the industry More than $1.4 billion has been lost this year due to 179 hacks and scams.
In October alone, losses amounted to $55.1 million, a significant decrease from the $126.9 million lost in September, a decline of 56.6%. Nevertheless, Immunefi’s data highlights the sector’s continued fragility as cumulative losses remain significant.
October’s losses are particularly notable for their concentration over several incidents. Seven specific exploits contributed to the month’s losses, two of which were major DeFi protocol hacks – Radiant Capital, which lost $50 million, and Tapioca DAO, which lost $4.4 million, were responsible for most of the financial damage.
Crypto is seeing shifts in security strategies
Immunefi’s Head of Security, Gonçalo Magalhães, commented on the evolving security in the sector, noting that “projects are increasingly implementing robust security measures,” including “more extensive audits, improved smart contract design and the introduction of bug bounty programs.”
He noted a noticeable improvement in the maturity of the industry’s security practices compared to two or three years ago. These above measures appear to help reduce exploit risks, although hackers still do so exploit weaknesses where possible.
The BNB Chain emerged as the most targeted network in October, accounting for 50% of attacks. Meanwhile, Ethereum and Arbitrum were jointly responsible 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 and higher targeting rates, with Ethereum-based ecosystems often leading the way.
This continued targeting suggests that while security measures have improved, high-quality assets and DeFi ecosystems remain attractive malicious actors.
Outlook for 2024: a sector on alert
As the year progresses, the crypto industry’s response to hacking attempts and fraud has shown a mixed but hopeful trend. Immunefi’s report notes that total losses in 2024 now show a slight decline of 1% compared to the previous year, indicating a gradual improvement.
This trend and the lower monthly operating levels suggest so increased security measures are in force. In addition to adopting more ‘robust’ security strategies, projects are increasingly focusing on comprehensive audits and deploying decentralized insurance mechanisms to offset risks.
However, large-scale incidents such as those involving Radiant Capital and Tapioca DAO reveal significant vulnerabilities. For example, while centralized finance (CeFi) was incident-free in October, DeFi remains a major target.
However, the lack of CeFi losses this month may indicate that attackers are increasingly focusing on decentralized protocols, taking advantage of their often rapid tactic development cycles.
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