DeFi Protocols Targeted in Majority of November 2024 Crypto Hack Losses

• DeFi protocols remain prime targets, with 100% of November 2024 losses tied to them.
• Crypto hack losses dropped 15% in 2024, but attacks remain frequent and evolving.
• Complex smart contracts in DeFi pose significant security risks despite audits.

The industry lost $1.49 billion from 209 incidents in the first eleven months of 2024. This was a 15% decrease from the same period in 2023. The number of incidents has revealed a troubling security issue in the industry. The report also notes that decentralized finance protocols remain highly vulnerable to attacks.

The Double-Edged Benefits of DeFi

The decentralized nature of DeFi offers plenty of advantages like increased transparency and increased accessibility. However, there are risks to it. Smart contracts are very complex and vulnerable. A single flaw in a smart contract can cause huge losses.

The Evolving Threat Landscape

Blockchain networks are always being attacked and exploited by hackers. The hackers keep changing tactics to dupe mostly new investors. In November 2024, the most exploited attack vector was smart contract vulnerability exploitation. The changing tactics of hackers should bring into focus the need to run rigorous code audits and security testing.

Another growing concern is also the rise of social engineering attacks. In these attacks, the hackers trick the victims into revealing secret information, such as private keys or seed phrases. Phishing and fake airdrops can result in major losses for unsuspecting users.