The Web3 industry faces new security challenges: from on-chain attacks to physical threats

Recently, a well-known digital asset trading platform suffered a data breach, sparking widespread discussions within the industry about Web3 security. A blockchain security expert pointed out that digital asset traders are particularly sensitive to privacy issues, as the nature of crypto assets makes them a preferred target for criminals. This viewpoint highlights the core contradiction in the current industry security ecosystem: as on-chain defense technologies continue to upgrade, threats from the physical world have become a new weak link.

Although the overall security level of blockchain networks has improved, criminals have not stopped there. On the contrary, they continue to explore the weak points of defenses and seek new attack paths. According to an annual report from a certain security company, phishing attacks have become the most common and impactful attack method on-chain, with losses last year reaching approximately $1.05 billion. This trend indicates that attackers are shifting from purely technical vulnerabilities to more easily achievable and high-reward attack methods, such as social engineering and physical threats. Recent frequent data breaches and kidnapping incidents further highlight the difficulty of comprehensive coverage by single-point defenses.

Security has never been a competition of a single dimension, but rather a continuous evolution of offensive and defensive games. The industry calls for the establishment of a broader security collaboration network, including the linkage of technology companies, government agencies, and law enforcement. For example, the French government's provision of an emergency hotline for Web3 practitioners indicates that in the future, it may be necessary to combine on-chain defenses, data privacy protection, and physical security measures to address this "war intertwined with digital and physical realms."

With the increasing frequency of kidnapping cases in the Web3 industry, more and more digital asset holders are starting to seek security services such as bodyguards. A company specializing in providing physical security and intelligence services for digital asset holders stated that they have received more inquiries, with some clients choosing to start long-term cooperation, and even more investors making more proactive security demands.

The physical security risks faced by Web3 investors are different from those faced by traditional financial clients. Public blockchain networks allow for instant and anonymous asset transfers, which means that once an investor is forced to surrender their private key or access, funds can disappear within seconds with almost no chance of recovery. In contrast, when traditional bank accounts are compromised, law enforcement can usually assist victims in recovering losses by freezing accounts or employing other means.

As online security measures continue to upgrade, some attackers are beginning to turn to more direct physical threats. Some security experts point out that the rapid development of the Web3 industry has made it exceptionally difficult to breach network defenses, to the extent that criminals have to resort to physical attacks to acquire assets. This heightened focus on security is also reflected in the security expenditures of industry leaders. For example, a well-known exchange platform spent significantly more on the personal security of its CEO last year compared to the CEOs of traditional finance and tech giants.

In response to this escalating threat, some governments have begun to take emergency measures. For example, the French Minister of the Interior stated that a priority emergency hotline will be established for the Web3 industry, and elite police forces will be organized to provide security checks and protective advice for Web3 executives and their families. Some large blockchain conferences have also strengthened security measures, collaborating not only with local police but also coordinating multi-department law enforcement, special forces, and private security companies to address potential threats.

However, this type of problem is not unique to any one country. A public database maintained by a Bitcoin security expert shows that over 20 physical attack incidents targeting digital asset holders have been recorded worldwide just this year.

In addition to bodyguard services, some security companies also offer bulletproof vehicles, home safety assessments, and social media monitoring to help clients avoid inadvertently leaking their location information. As people gradually become aware that digital wealth can also bring real-world risks, the demand for comprehensive security protection may further increase.