Product reviews, deals and the latest tech news

Crypto fraud cost the Web3 ecosystem $3.9 billion in 2022

The advent of cutting-edge technology brings with it a host of perils hitherto unknown. With the meteoric rise of cryptocurrencies after Bitcoin’s debut in 2008, fraudsters have been actively seeking new methods to defraud consumers of their hard-earned funds. As the Web3 ecosystem develops, fraud becomes an increasingly serious problem.

Today, Immunefi, a company that offers bug bounties on the Web3, revealed fresh data estimating that in 2022, hackers and scammers stole $3,948,856,037 worth of cryptocurrencies from the Web3 ecosystem as a whole. According to the data, BNB Chain and Ethereum were the two most attacked blockchains in December of last year, with 65 and 49 security incidents, respectively.

While crypto fraud is still widespread, it has declined by 51.2% from its all-time high of $8,088,338,239 in 2021.

Whatever the case may be, the findings of this study emphasise the need of a well-developed security plan for enterprises working with the Web3 ecosystem in light of these new dangers.

The dangers of Web3 and other “novelty” assaults

Web3 market is expected to increase from $3.2 billion in 2021 to $81.5 billion in 2030, at a compound annual growth rate (CAGR) of 43.7%, according to a new analysis.

As the market grows in importance, more and more frauds and risks will emerge as hackers target its customers in an effort to steal their money. This presents new difficulties, since the character of these assaults in virtual environments will be different from that seen in the conventional Web2 environment.

According to Immunefi co-founder and CEO Mitchell Amador, “Web3 is still a whole new universe, full with unexplored routes.” That’s never been done before, so there’s an element of inexperience and risk there. In addition, the environment is far more hostile compared to conventional Web2 apps because of the very structure of the Web3 ecosystem, in which smart contract code contains enormous sums of cash.

Web3 solution novices are an easy target for new frauds since they are still learning the ropes.

Amador said that “customers are still learning to the technology,” adding that “many hardly even know how to properly utilise wallets and sign for transactions” on Web3. It’s not surprising that malicious actors may take advantage of the inexperience and ignorance of new users given the rapid pace at which new projects and technologies are released.

Therefore, Amador suggests that CISOs and security executives who interface with these technologies invest in security education, including not just phishing threat training but also instruction on how to utilise wallets, private keys, and standard DeFi apps.

In the future, it will be crucial for leaders and experts in the field to assist users and keep them abreast of the methods con artists are using to steal their information.