2023: The Year of No Mercy for Cyber Threats

  • Users are warned to be more cautious with their private keys as the industry is likely to experience “more attempts from hackers targeting bridges in 2023”
  • The business announced that it will also keep an eye on phishing methods that might become more common in the coming year
  • Users are able to create unique “vanity” crypto addresses using the Profanity tool

According to CertiK, fraud, vulnerabilities, and hackers won’t likely be reduced in 2023. The beginning of the year offers the cryptocurrency industry’s negative actors a fresh start.

“We witnessed a big number of occurrences last year despite the crypto bear market, so we do not anticipate a respite in exploits, flash loans, or exit scams,” the blockchain security business said when asked about its expectations for criminal actors in the area in the coming year.

The business cited “devastating” cross-chain bridge vulnerabilities from 2022 as an example of additional ill-intentioned incidents the crypto community might experience. Six of the top 10 biggest exploits of the year—which resulted in a total theft of over $1.4 billion—were bridge attacks. CertiK highlighted that there may be “more attempts from hackers targeting bridges in 2023” as a result of these historically high returns.

On the other hand, CertiK claimed that since the Profanity tool vulnerability, which has previously been used to target a number of crypto wallets, is now well-known; there will probably be “fewer brute force attacks” on crypto wallets.

Users of the Profanity tool can create unique “vanity” crypto addresses.

Instead, according to CertiK, wallet compromises this year will probably be the result of inadequate user security. He added:

“It’s possible that funds lost to private key compromises in 2023 will be due to poor management of private keys, bar any future vulnerability found in wallet generators.”

The company stated that it will also be keeping an eye on any phishing methods that might become popular in the coming year. It made notice of the several Discord group hacks that took place in the middle of 2022 and deceived users into clicking phishing links, such as the Bored Ape Yacht Club (BAYC) Discord hack in June that led to the theft of 145 Ether (ETH).

According to peer security company Immunefi, the ten largest crypto theft cases from the previous year resulted in the theft of $2.1 billion in total, while the overall amount of crypto theft via Decentralized Finance (DeFi) protocols in 2021 was $10.2 billion.

The Ronin bridge exploit, in which thieves stole almost $612 million, was the greatest occurrence of 2022 and all time. The $76 million Beanstalk Farms exploit was the greatest flash loan assault, and the $79.3 million taken from Rari Capital was the largest DeFi protocol exploit.

In summation, the world of cryptocurrencies and DeFi will probably still be exposed to a variety of cyber dangers in 2023, such as exploits, flash loans, and exit scams. To protect against these threats, it’s important to stay informed about the latest risks and best practices and to use reputable and secure exchanges and storage solutions. While there is no foolproof way to prevent all cyber threats, taking these steps can help to reduce the risk of losses due to cyber attacks.