Problem

Rising Theft Threatens Mass Crypto Adoption

The increasing rate of crypto theft is posing a significant threat to the industry, and the consequences are alarming. The Chainalysis 2023 Crypto Crime Report reveals that the total revenue generated from crypto scams since 2017 has exceeded a whopping $37 billion, with over $16 billion of that amount collected in the last two years alone. The average yearly revenue loss due to crypto theft over the last six years stands at a staggering $6 billion, indicating a 22.5% year-on-year increase. This trend highlights the urgent need for enhanced security measures to tackle the growing threat of scams, as more people enter the cryptocurrency market. However, it's not just scams; cybercriminals also utilize malware, phishing, and other malicious tactics to carry out crypto theft. This trend is concerning for the crypto and NFT community, putting their reputation at risk and exposing their community to the dangers of theft. If this trend continues, it could result in a catastrophic impact on the adoption of DeFi and cryptocurrency on a global scale.

Social Engineering & Phishing Attacks Plague Web3

For more than two decades, phishing attacks have posed a persistent and pervasive threat to online security, with billions of dollars spent trying to thwart them. In Web3, however, the threat is even more significant, with a single click potentially leading to the draining of their entire wallet and loss of digital assets. To put it into perspective, Phishing, identified by IBM as one of the leading attack vectors in cybercrime, accounted for 16% of such incidents. On average, breaches resulting from phishing cost $4.91 million. With the switch to Web3 and users handling their own funds, there must be more awareness on how to stay safe. If these phishing scams succeed with employees who have cybersecurity measures in place, they will succeed at phishing individuals who are new to it. When it comes to the security problems facing Web2 and Web3 users, the most prevalent issues center around social engineering. Social engineering is the act of tricking someone into giving up some valuable information, and in the online world, this often means convincing users to click on a link, reset a password, or sign a contract for an airdrop before time runs out. Attackers use a variety of methods to achieve this, including phishing attacks, malware infections, and scams that take advantage of the hype surrounding cryptocurrency and Web3 technologies. These attacks can lead to the theft of personal information, login credentials, and funds, as well as weak or compromised private keys and vulnerable accounts. Victims of such attacks typically have little to no recourse for recovering their funds, making the consequences even more dire. With this in mind, it's vital for users to be vigilant and take proactive steps to safeguard their assets, including using robust security measures and remaining vigilant when it comes to suspicious links or unsolicited messages.

The Browser is the New OS

Browsers have increasingly become the new operating systems due to the rapid growth of web-based applications and cloud services. This shift has been fueled by the widespread adoption of software as a service (SaaS) and the increasing reliance on the internet for both personal and professional tasks. As the browser takes center stage as the new OS, it is essential to recognize the sheer number of people relying on browsers for various activities. According to Statista, there were over 5 billion internet users worldwide as of 2023, with most using browsers as their primary means of accessing and managing online resources. This massive user base makes the browser a prime target for cybercriminals seeking to exploit vulnerabilities and steal valuable information. Companies are not immune to the risks associated with the growing prominence of browsers as the new operating systems. Employees often rely on browsers for a variety of work-related tasks, such as accessing cloud services, collaborating on documents, and communicating with colleagues. This widespread reliance on browsers in the workplace makes organizations more susceptible to cyber threats that can compromise sensitive data and disrupt business operations. By prioritizing browser security, individuals and companies can protect their valuable assets and ensure a safer online environment for their employees.

Threat Intelligence is Siloed

The problem of threat intelligence being siloed is a major industry problem that has significant consequences for security in the Web3 ecosystem. Typically, threat intelligence is closely guarded by companies in order to gain a competitive advantage over others. However, this approach can limit the effectiveness of security measures since the same data is needed to power the security tools that everyone relies on. Using blockchain powered by Web3 communities, there is an opportunity to gather communities of individuals who are willing to collaborate and share their threat intelligence data. By incentivizing this collaboration, it's possible to create a much more robust and diverse dataset that is more effective at addressing the unique security challenges of the decentralized Web3 world. This type of collaboration and data sharing was not possible prior to Web3 due to the lack of incentives and mechanisms for collaboration. However, with the emergence of blockchain technology, it's now possible to create a system where individuals are rewarded for their contributions to the security of the network. This can lead to a more effective and collaborative approach to security in Web3, helping to address the ongoing challenges posed by social engineering and other security threats.