The latest CertiK Web3 Security Report shows a staggering $1.19 billion lost to security breaches in the first half of 2024, highlighting the urgent need for better protection.
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Major Security Breaches
The DMM Bitcoin attack in the second quarter was the largest breach, with $304 million stolen, while the Turkish exchange BtcTurk lost $90 million in a cyberattack targeting hot wallets. Ronghu Gu, co-founder of CertiK, stressed the need for taking active steps to improve security and having teams ready to respond quickly.
Phishing and Key Compromises
Phishing attacks and private key compromises accounted for nearly $498 million of the losses. Gu stressed the importance of using multifactor authentication (MFA) such as two-factor authentication (2FA) and security keys to safeguard funds. “All wallets with significant funds should use a hardware wallet or a similarly secure key management solution,” Gu told Cointelegraph.
Regulatory Frameworks Offer Hope
Amid these security challenges, the FIT21 regulatory framework bill was introduced and passed in the United States. This bill aims to enhance consumer protections and support innovation within the crypto sector. It received bipartisan support and is expected to foster a safer, better-regulated environment for digital assets.
Learning from Past Incidents
Despite the losses, Gu noted that things aren’t all bad. In June, the number of hacks and exploits dropped by 54.2% compared to May. PeckShield data showed that $176.2 million was lost to crypto hacks in June, a big drop from May.
Simple Measures for Better Security
Gu said that while losses are a part of the industry for now, users can take simple steps to protect themselves. Using 2FA and other security measures can reduce the risks of holding digital assets.
Key Takeaway
Crypto platforms need strong security to prevent big financial losses. Using 2FA, having good rules, and taking proactive steps are key to keeping digital assets safe. These actions will help make crypto investments more secure and trustworthy.
