Rich by Coin

Web3’s appeal is matched by rising security vulnerabilities, with losses totaling a staggering $3.35 billion last year as hackers exploit expanding attack surfaces. Instead of targeting a single protocol, attackers are mapping the broader Web3 landscape, while DeFi platforms remain highly exposed to cyber threats. Supply-chain attacks have become a leading source of losses, accounting for roughly half of all incidents. A single breach in shared services can ripple across multiple projects, as illustrated by the Bybit incident earlier this year; such events highlight the need for ongoing security audits, incident response planning, and greater transparency among users and developers.

Phishing has evolved with advances in artificial intelligence, enabling attackers to craft convincing messages and spoof official channels. To counter these tactics, users should scrutinize URLs and emails, enable multi-factor authentication, and consider hardware wallets for added security. With crypto payroll rising in prominence, firms must guard payroll systems against AI-based impersonation and other vulnerabilities; strict access controls and regular audits are essential. Looking ahead, the industry must move from reactive to proactive, systemic protection and embrace threat intelligence sharing to shore up Web3 defenses.

The Web3 space is expanding, yet security gaps are widening as attackers map the broader landscape. Last year saw losses of $3.35 billion, underscoring how hacks are shifting from single protocols to larger attack surfaces in DeFi and beyond. Proactive, systemic safeguards are now essential to protect crypto assets. Supply chain attacks remain a leading source of losses, with a single compromised shared service capable of affecting numerous projects. The Bybit incident illustrates how one weak link can trigger cascading effects across the ecosystem, highlighting the need for continuous security audits, incident response planning, and greater transparency among users and developers.

Phishing has evolved with artificial intelligence, enabling highly realistic messages that imitate official channels. To counter these tactics, users should verify URLs, enable multi-factor authentication, and consider hardware wallets; firms must enforce strict access controls and regular payroll audits as crypto payroll grows. Continuous vigilance and collaboration across the industry are vital to moving from reactive to proactive protection.