Even though Web3 evangelists have long touted the native security features of blockchain, the torrent of money flowing into the industry makes it a tempting prospect for hackers, scammers and thieves.
When bad actors succeed in breaching Web3 cybersecurity, it’s often down to users overlooking the most common threats of human greed, FOMO, and ignorance, rather than because of flaws in the technology.
Many scams promise big payoffs, investments, or exclusive perks; the FTC calls these money-making opportunities and investment scams.
Big money in scams
According to a June 2022 report by the Federal Trade Commission, over $1 billion in cryptocurrency has been stolen since 2021. And the hackers’ hunting grounds are where people gather online.
“Nearly half the people who reported losing crypto to a scam since 2021 said it started with an ad, post, or message on a social media platform,” the FTC said.
Although fraudulent come-ons sound too good to be true, potential victims may suspend disbelief given the intense volatility of the crypto market; people don’t want to miss out on the next big thing.
Attackers targeting NFTs
Along with cryptocurrencies, NFTs, or non-fungible tokens, have become an increasingly popular target for scammers; according to Web3 cybersecurity firm TRM Labs, in the two months following May 2022, the NFT community lost an estimated $22 million to scams and phishing attacks.
“Blue-chip” collections such as Bored Ape Yacht Club (BAYC) are a particularly…
