In 2025, the crypto sector experienced a staggering theft total exceeding $3.4 billion, with a significant portion attributed to social engineering tactics, as reported by Chainalysis. The compromise of Bybit in February alone accounted for nearly half of the stolen amount. According to Nick Percoco, chief security officer at Kraken, most hacks in the coming year are expected to stem from human interaction rather than technical vulnerabilities.
Social engineering manipulates individuals into divulging sensitive information or taking actions that compromise security. Percoco emphasized that the focus of crypto security is shifting from strengthening technological defenses to enhancing human awareness to prevent manipulation. He advised adopting proactive measures, such as automating security procedures and rigorously verifying digital interactions to combat the rising threat.
The landscape of crypto security is poised for transformation, driven by advancements in identity verification and artificial intelligence that can detect unusual behavior swiftly. As the industry faces evolving threats, understanding and mitigating the risks associated with social engineering will be crucial for protecting digital assets.