This year, hackers have already cost Web3 projects billions

Flash loans have also caused significant harm, along with phishing and vulnerabilities.

In the first half of 2022, hackers and con artists were able to steal more than $2 billion from Web3 projects, surpassing the total lost in 2021.

While viruses, hacks, frauds, phishing, identity theft, and other social engineering attacks are all pretty popular among threat actors, a new threat that has emerged and become quite the monster is flash loan attacks, according to a report from CertiK.

A flash loan is exactly what it sounds like; it's a loan that may be obtained and paid back quickly. However, considering that people can obtain huge sums of money through flash loans, these can be abused to attack certain protocols and syphon off money.

Loss of millions

The Beanstalk procedure experienced a similar occurrence in April 2022. Voting rights are granted to BEAN token holders in large quantities, letting them to decide on significant decisions like money withdrawals. An attacker was able to acquire significant amounts of BEAN with the aid of a flash loan, and they subsequently made use of their increased voting power to support the protocol's over $200 million withdrawal.

CertiK reports that 27 flash loan attacks occurred in the second quarter of 2022, causing losses of $308 million. However, just a few months prior, "only" $14 million had been lost in that manner.

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The experts also claim that there was an increase in phishing attacks between the first and second quarters, from 106 in Q1 to 290 in Q2.

Discord is one of the most well-liked social networking sites among crypto and Web3 developers and fans, therefore that is usually how the attackers try to compromise endpoints.