Human Error, Not Code, Drives Most Web3 Losses, Kerberus Report Finds
Blockchain security firm Kerberus reveals that human error, not faulty code, is the primary cause of losses in the Web3 ecosystem. Private key mismanagement accounts for 44% of crypto thefts, while broader cybersecurity studies show 60% of breaches involve human mistakes.
The industry's heavy investment in smart contract audits and bug bounties often fails to protect users during critical moments of vulnerability. "Social engineering drives the majority of real losses," says Alex Katz, CEO of Kerberus. "Users are expected to identify threats they can't possibly detect."
Unlike traditional finance systems that automatically block fraudulent transactions, Web3 security infrastructure remains overly focused on code integrity. The report highlights a glaring gap in real-time protection for users during high-stress interactions with decentralized platforms.
