The digital asset sector has been facing increasing security issues, with hacking attacks costing nearly $1 billion in crypto projects during the first half of 2026.

Hackers were able to make off with some $972 million in 207 attacks between January and June, according to a new report from blockchain security provider Immunefi, which is the most in six months.

With the most breaches ever reported, however, the financial loss was markedly less than during the first half of 2025. This means that although cyber crime attacks are increasing there is a trend for losses to decrease as the average attack gets smaller.

DeFi Security Improvements Help Reduce Losses

The report identifies better practices throughout the DeFi sector. DeFi losses from exploits have taken a hit compared to previous years. DeFi projects were attacked in 2022 and lost over $2.6 billion. The number has now significantly reduced, indicating that a growing number of projects are getting better equipped to identify and thwart attacks.

Bug bounties, security audits, vulnerability testing, and the active involvement of ethical hackers are attributed to the decrease in impact of exploits by industry experts. This enables developers to find and address weaknesses before being taken down by criminals.

Hackers Are Targeting New Areas

But that’s not the way they’re conducting crypto attacks anymore. It is not just the old famous vulnerabilities that are problematic anymore. Security of the infrastructure systems, private keys, access-segments and cross chain configurations are new targets for hackers. Often these areas handle critical operations, and if attacked, they can give the attacker direct access to funds.

The shift reflects a new shift in the consideration of attackers to operate beyond protocol code, and instead targeting operating weaknesses that provide more direct access to valuable assets.

AI-Powered Scams Create New Risks

The report also identifies the threat being posed by artificial intelligence is growing. In fact, cybercriminals are leveraging AI to produce realistic phishing emails, fake messages, voice impersonation and deep fake videos. These tactics simply increase the likelihood of defrauding an employee, executive or project partner to divulge important information or to approve questionable transactions.

In the ever-advancing age of AI, fraudulent communication is growing more sophisticated, adding to the risk throughout the cryptocurrency industry.

Web3 Companies Must Strengthen Security

This means crypto companies must strengthen beyond code audits, security experts say. Multi-step transaction validation, employee training, strong access control, and fending off social engineering attacks are now crucial components of Web3 security protocols.

According to the results, although the crypto scene progresses in averting losses from exploits, it lacks against newly developing exploits. The growing sophistication of threats also requires a more robust approach to technology and people to ensure businesses get ahead of emerging threats.