Web3 must strengthen operational frameworks to combat hacking, says report

Asian Web3 research and consulting firm Tiger Research has highlighted that recurring hacks and a fund recovery rate of under 10% are eroding trust in the industry. According to its report, social engineering accounted for 74.7% of hacks in the first quarter of this year, making human error the primary attack vector over code vulnerabilities. The report explained that the on-chain nature of these thefts makes them difficult to reverse, often resulting in permanent losses. While centralized exchanges can absorb such damages through reserves and coordinated efforts, DeFi's response capabilities are limited. Tiger Research emphasized that attracting institutional investment requires prioritizing the development of robust incident response structures and responsible operating systems over purely technological solutions.