Reports from Chainalysis have shown over 1.3 billion dollar have been made away in Q1 of 2022, 97% of this funds where stolen from decentralized finance platforms (DeFi) offering investment opportunities to investors cybercrime hackers have taken advantage of these DeFi smart contract by analyzing their script for security bridge and have over time stolen millions of dollars of users investment which are sometimes very difficult to track down due to anonymity in the use of DeFI based protocols.
Citing the alarming increase in DeFi theft Federal Bureau of Investigation (FBI) are helping victims investigate their stolen fund the tweet below show users can contact local federal security office to help track their funds, there are slim chance of recovering such stolen assets as tracing stolen funds are hard to track down when it comes to crypto privacy consensus.
The #FBI warns that cyber criminals are increasingly exploiting vulnerabilities in decentralized finance (DeFi) platforms to steal investors cryptocurrency. If you think you are the victim of this, contact your local FBI field office or IC3.
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Working closely with security personnel can help minimize these DeFi attack, introducing KYC to centralized exchanges was a tactical security measure used by authorities to help reduce money laundry in centralized exchanges which reveal anonymity of cybercriminals.
DeFi protocols do not require users verification proceeding to invest their assets making it a safe place for criminal to anonymously take advantage of the none mandatory KYC process to perpetrate their dubious action by override DeFi smart contracts.
The agency have drawn users attention to some tactics cybercriminals use to exploit DeFi platform to launch their attacks.
Using DeFi token bridge
Initiating flash loan
Manipulating crypto currency price
Smart contract exploit can be managed with the help of code audit inviting expert to check certain shortfall in codes and patch necessary vulnerable areas are one of the best way of preventing smart contract coding exploits.
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