Hackers have successfully kept up with the rapid development of blockchain systems, resulting in approximately $920 million in stolen funds during the first half of 2023. Cybercriminals employed various tactics, such as attacking smart contracts, phishing victims, and targeting crypto exchanges, in a multitude of security incidents.
Although the quality of attacks has improved, the total amount stolen has seen a significant decrease compared to last year, with losses from cyber incidents dropping by 54%. Most attacks this year focused on decentralized platforms, bridges, and decentralized finance (DeFi) applications, making the sector an attractive target due to its reliance on smart contracts and relative regulatory leniency.
DeFi platforms, bridges, and non-fungible tokens (NFTs) accounted for 131 incidents, resulting in losses of $487 million. SlowMist, a security firm, emphasizes the need for comprehensive security measures, including third-party audits, vulnerability disclosure, and regulatory compliance mechanisms, to protect DeFi projects from potential attacks.
Bridges, which facilitate interoperability between different blockchains, faced seven security incidents this year, highlighting the challenges associated with their complex protocols and technologies. Third-party audits, bug bounty programs, and an increased number of signatories for transactions can help mitigate the risks.
NFTs were the focus of 13 security incidents, with hackers exploiting inherent vulnerabilities in projects, while phishing attacks on platforms like Discord and Twitter contributed to 46% of incidents.
Wallet security incidents were relatively rare, but the attack on Atomic Wallet resulted in the largest theft, with hackers stealing $109 million. SlowMist advises victims to follow proper protocols, including notifying relevant institutions, freezing funds on centralized exchanges, and seeking assistance from the community, stakeholders, and experts to enhance recovery chances.
Notably, hackers returned $219 million of the $232 million stolen in 10 hacks this year, highlighting the potential for the return of stolen assets as a new trend if accompanied by a comprehensive strategy.
