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FBI offers security advice to DeFi users following recent hacks – BeInCrypto

The Federal Bureau of Investigation has issued a global alert warning investors of planned scams aimed at stealing user funds, including the risks associated with using decentralized financial platforms.

In a statement published on Tuesday, the FBI had recommended that crypto investors conduct thorough research on DeFi platforms, smart contracts and protocols before using them, in order to better understand the potential risks involved before investing. Among the elements to watch are the platforms whose codes have been audited at least once according to the FBI

“Ensure that the DeFi investment platform has completed one or more code audits performed by independent auditors. A code audit typically involves an in-depth review and analysis of the platform’s underlying code to identify vulnerabilities or code weaknesses that could negatively impact platform performance,” the FBI said in its recommendations.

The FBI also said it monitored cybercriminals exploiting vulnerabilities in smart contracts governing DeFi platforms, using investment strategy or self-executing contracts with “an agreement between buyer and seller written directly into lines of code that exist on a distributed decentralized blockchain network”. ”. These exploits have generated profits for the criminals that the victims cannot claim at this time.
“The FBI encourages investors who suspect that cybercriminals have stolen their crypto investments to contact the FBI through the Internet Crime Complaint Center or their local FBI office,” the agency said in its statement.

The rise of DeFi hacks

The FBI was quick to add that scammers who have widely spammed the industry are targeting investors using the complexity of cross-chain functionality and the open nature of DeFi platforms.
“Cybercriminals are exploiting security flaws in smart contracts governing DeFi platforms to steal virtual currency and cause investors to lose money,” the agency said.

It is estimated that between January and March, criminals stole approximately 97% of the $1.3 billion worth of cryptocurrencies from DeFi platforms, an increase from 72% in 2021 and 30% in 2020. Cybercriminals have also attempted to steal using flash loans. Causing a loss of $3 million in crypto.

FBI makes recommendations to DeFi platforms

DeFi users have been given the ability to borrow and lend assets in a way similar to banks, but these assets are not backed by insurance and are more vulnerable to hacks and exploits due to the lack of government policies regulating them.

The agency recommended that DeFi platforms implement scanning, monitoring, and code testing to address potential vulnerabilities that could lead to contract exploitation. Over the past few years, several experts have advised businesses that the most effective and sustainable approach is to implement security software that uses multi-factor authentication or MFA, but platforms don’t have it. not yet adopted.

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