Web3 Security Crisis: $3.1B Lost to Hacks and Scams in H1 2025
The web3 industry hemorrhaged $3.1 billion to exploits and fraud in the first half of 2025, with phishing attacks accounting for nearly 20% of losses. Hacken's security report reveals systemic vulnerabilities as malicious actors increasingly bypass decentralized safeguards.
August saw $12.7 million drained through basic social engineering—fake links and spoofed sites outpacing user defenses. Unlike traditional finance's fraud protections, web3 victims bear full liability, chilling institutional participation.
Security experts demand wallet-level protections and insurance mechanisms to reframe phishing as financial fraud rather than user error. The industry's focus on high-profile hacks over pervasive scams risks normalizing preventable losses.
