The latest CertiK Web3 Security Report reveals a significant loss of $1.19 billion due to onchain security incidents in the first half of 2024, emphasizing the urgent need for enhanced security measures. The report identifies phishing attacks and private key compromises as the primary culprits, with phishing alone responsible for nearly $498 million in losses.
In an interview with Cointelegraph, CertiK co-founder Ronghu Gu underscored the importance of multifactor authentication, including two-factor authentication (2FA) and security keys, to bolster security.
An infographic depicting the types of cyberattacks and the financial losses associated with each. Source: CertiK
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#### H1 Hack Attack
Among the security breaches in 2024, the DMM Bitcoin attack was the most significant in the second quarter, ranking among the largest hacks in history with a $304 million loss. The Japanese crypto exchange suffered a breach that resulted in the theft of 4,502.9 Bitcoin (BTC), prompting the platform to implement stronger security measures.
Another major incident involved the Turkish crypto exchange BtcTurk, where a cyberattack on hot wallets led to a $90 million loss. Gu informed Cointelegraph that these recent breaches indicate that “attackers are still out there” testing the defenses of major crypto custodians.
An infographic showcasing the top 10 incidents and the financial losses for each. Source: CertiK
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#### FIT21 Introduces Regulatory Hope
Amid the losses in the first half of 2024, the FIT21 regulatory framework bill was introduced and passed in the United States. The FIT21 bill aims to enhance consumer protections and foster innovation in the crypto sector through a comprehensive digital asset regulatory framework. The bill, which received bipartisan support, is expected to create a safer and better-regulated environment for digital assets in the U.S.
Gu noted that the FIT21 bill “will likely attract more institutional investors and drive greater compliance efforts and requirements across the industry.”
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**Crypto hacks down by 54.2% in June, $176M lost in a month**
#### Lessons Learned and Crime Trends
Despite the concerning findings in CertiK’s report, Gu pointed out that “the trend is not pointing downward.” While crypto hacks resulted in nearly $385 million in losses in May, exploits and hacks saw a 54.2% reduction in June. PeckShield data indicates that $176.2 million was lost to crypto hacks in June, marking a significant decline from May.
Gu advised that while the scale of losses might be “just a part of the industry” for now, there are “simple measures” users can take to protect themselves, such as enabling 2FA.
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