The reduction in losses shows that in the cryptocurrency space, the security measures and risk mitigation strategies adopted are gradually becoming more effective over time.
Losses from hacking and scams in the cryptocurrency space have dropped significantly in the year to April, according to a new report from blockchain security firm CertiK.
CertiK pointed out in its latest report that the cryptocurrency industry’s losses due to security incidents such as hacking attacks, vulnerability exploits, and fraud dropped significantly in April, with losses amounting to approximately $25.7 million. The amount of losses dropped significantly by 141% compared to the previous month, a decline that highlights the significant improvement in security in the cryptocurrency industry.
CertiK’s detailed analysis shows that in April, the cryptocurrency industry suffered losses from different security incidents, with exit scams resulting in losses of approximately $4.3 million, flash loan attacks resulting in losses of $129,000, and vulnerability exploits causing losses of $21 million.
The reduction in these losses, especially compared to previous years, sends positive signals for the cryptocurrency industry.
Hacken's report released in April pointed out that in the first quarter of 2024, as the entire industry recovered, the number of hacking incidents increased, resulting in 67 breaches and losses of more than $824 million. It is particularly noteworthy that these attacks often target high-profile individuals and projects, showing a trend of attackers tending to choose high-profile targets.
A key finding of Hacken is that recent cyberattacks have increasingly targeted well-known figures and important projects in the cryptocurrency industry. This phenomenon shows that criminals are increasingly focusing their attention on targets with high visibility and influence. The rise in this trend may mean that attackers believe that by attacking these high-profile targets, they can gain greater financial benefits, satisfaction from technical challenges, or to have an impact on a wider scale. This also reminds the entire cryptocurrency industry to be vigilant against such targeted threats and take more effective security measures to prevent potential risks.
Despite the challenges, blockchain security companies also reported a positive news: more than half of the stolen funds, or nearly $444 million, have been successfully recovered or frozen. This achievement shows that the cryptocurrency industry has improved its response speed and efficiency in responding to security incidents. This improved responsiveness is partly due to bounty programs within the industry and the active participation of white hat hackers, who help identify and fix security vulnerabilities, thereby reducing losses.
Overall, these developments demonstrate a significant improvement in the cryptocurrency industry’s ability to respond to security incidents, thanks to the incentives provided by the bounty system, which attracts many white hat hackers and security experts to actively discover and report vulnerabilities. At the same time, the proactive involvement of white hat hackers plays a key role in identifying and fixing security vulnerabilities. Close cooperation within the industry, through information sharing and collaborative response, has further improved the overall defense and response speed to security threats, effectively reducing losses caused by attack events. Together, these measures have promoted the improvement of industry safety protection capabilities. #CertiK #加密诈骗