Web3 Hacking Epidemic: Social Engineering Tactics Worry Experts

The Web3 ecosystem has been plagued by a surge in hacking attacks, with a significant shift towards social engineering tactics. According to recent data, 74.7% of Web3 hacks in the first quarter of this year involved human-targeting social engineering attacks.

This represents a substantial increase from 2021, when such attacks accounted for just 28.7% of total hacks. The rise of social engineering is particularly concerning, as it often involves tricking individuals with authority to steal assets, rather than exploiting vulnerabilities in code.

The consequences of these attacks have been devastating, with the recovery rate of stolen funds plummeting to just 6%. This is largely due to the advanced money laundering techniques employed by hackers, which involve using mixers and cross-chain bridges to conceal their tracks.