According to a recent report from blockchain security firm Immunefi, the cryptocurrency sector will face continued challenges with hacking and scams in 2024.
The report highlights that although the loss of exploitation has decreased every month, the industry has seen more than $1.4 billion lost in hacks and 179 scams this year.
In October alone, the loss reached $55.1 million, a significant decrease from the $126.9 million lost in September, which marks a decrease of 56.6%. Nevertheless, the data of Immunefi highlights the continuing risks of the industry, as the combined losses remain large.
The October losses are particularly notable because of their focus on a few incidents. Seven direct actions contributed to the loss of the month, with two major DeFi protocol hacks – Radiant Capital, which lost $50 million, and Tapioca DAO, which lost $4.4 million – causing significant financial damage.
Crypto Is Seeing a Change in Security Strategies
Immunefi’s Head of Security, Gonçalo Magalhães, commented on the evolution of security in the industry, noting that “projects are increasingly taking strict security measures,” including “extensive audits, improved contract drafting, and the introduction of bug bounty programs.”
He noted a noticeable improvement in the maturity of security measures in the industry compared to two or three years ago. The above measures seem to help reduce the risk of exploitation, although hackers continue to exploit weak points where possible.
The BNB Chain emerged as the most targeted network in October, accounting for 50% of the attacks. Meanwhile, Ethereum and Arbitrum together account for the remaining 50%, with each chain seeing 25% of the month’s events.
This distribution of hacks across these chains highlights how certain networks continue to attract high targeting frequency, with Ethereum-based ecosystems often at the forefront.
This ongoing trend suggests that despite improved security measures, high-value assets and DeFi ecosystems remain attractive to malicious actors.
Outlook to 2024: A Vigilant Sector
As the year progresses, the crypto industry’s response to hacking and fraud attempts shows a mixed but optimistic trend. Immunefi’s report notes that total losses in 2024 now show a 1% decrease compared to last year, indicating a gradual improvement.
This trend and the reduced monthly exploitation rates suggest that improved security measures are working. In addition to adopting more “strong” security techniques, projects are increasingly focusing on comprehensive audits and the deployment of insurance mechanisms to mitigate risk.
However, large-scale events such as those involving Radiant Capital and Tapioca DAO present significant risks. For example, while centralized finance (CeFi) had no events in October, DeFi remains the main indicator.
However, the absence of CeFi losses this month may reflect the increasing focus of attackers on decentralized agreements, using their often faster tactical development cycles.
The featured image was created with DALL-E, a Chart from TradingView
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