According to another a report From blockchain security company Immunefi, the cryptocurrency sector will face continued challenges with hacks and scams in 2024.
The report highlights that although exploitation losses have declined month-on-month, the industry has seen more than $1.4 billion lost due to 179 hacks and scams this year.
In October alone, losses were $55.1 million, a significant decline from the $126.9 million it lost in September, representing a 56.6% decline. However, Immunefi data highlights the continued weakness of the industry, as cumulative losses remain significant.
October’s losses are particularly notable because of their concentration on 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 most of the financial damage.
Cryptocurrencies are seeing shifts in security strategies
Immunefi’s Head of Security, Gonzalo Magalhaes, commented on the evolution of security in the industry, noting that “projects are increasingly adopting strong security measures,” which include “more comprehensive audits, improving the design of smart contracts, and introducing bug bounty programs.”
He pointed to a noticeable improvement in the maturity of security practices in the industry compared to what it was two or three years ago. These above measures appear to help reduce the risk of exploitation, although hackers continue to exploit vulnerabilities wherever possible.
The BNB chain emerged as 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 crashes.
The distribution of hacks across these chains highlights how certain networks continue to attract higher targeting frequencies, with Ethereum-based ecosystems often at the forefront.
This continued targeting suggests that while security measures have improved, high-value assets and DeFi ecosystems remain attractive to malicious actors.
Forecast for 2024: Sector on alert
As the year progresses, the cryptocurrency industry’s response to hacking and fraud attempts shows a mixed but hopeful trend. The Immunefi 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 lower monthly exploitation levels indicate that heightened security measures are coming into effect. 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 affecting Radiant Capital and Tapioca DAO expose significant vulnerabilities. For example, while Central Finance (CeFi) was incident-free in October, central financing remains a key target.
However, the absence of CeFi losses this month may indicate attackers’ increased focus on decentralized protocols, taking advantage of often rapid tactic development cycles.
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