Security Audits are "Not Enough" as Crypto Hacks Losses Topped $1.5B in 2023

Reported by Cointelegraph, almost $1.5 billion had alredy been lost to crypto hacks, exploits and scams in 2023. With the number of security incidents happening within the space and the value lost to each hack or exploit, it’s undeniable that there are gaps to be filled in terms of digital asset security within the crypto space.

Ronghui Gu, the co-founder of blockchain security firm CertiK, said that it’s “inexcusable” to have continued incidents caused by SIM-swap and multisig failures after incidents gave visibility to this security issue. According to Gu, companies should embrace crypto-native multi-factor authentication and conduct regular security audits.

Christian Seifert, the researcher in residence at Forta Network, also agreed that security needs to be a priority. Seifert, who previously worked as a security lead at Microsoft, said that users need to demand security and if this doesn’t happen, regulators need to step in.

Furthermore, Seifert also argued that while security audits are effective, these are “not enough.” “One needs a comprehensive security strategy that starts with secure design and moves all the way to monitoring and threat prevention solutions,” he added.

The security researcher noted that while those who adopted the technology early accept that there are risks, this will no longer be acceptable to the broader user base that the crypto space is trying to attract.