Web3 Industry Faces Security Crisis Amid Rise in Social Engineering Attacks

The Web3 industry is at a critical juncture, where operational maturity will determine its long-term viability. Recent research by Tiger Research has highlighted the need for urgent operational overhaul to combat the devastating hacking epidemic plaguing the sector.

The report reveals that social engineering attacks have become the primary attack vector in Web3 hacks, accounting for 74.7% of successful incidents in Q1 2025. This shift in attack vectors highlights the importance of prioritizing human security over technical measures alone.

The immutable nature of blockchain transactions makes it challenging to recover stolen funds, with less than 10% of assets recovered across the Web3 ecosystem. The industry is urged to develop comprehensive operating systems that integrate multiple protective layers, including preventive controls, detective controls, and corrective controls.