If you’re worried about crypto hacks, here’s the uncomfortable truth: most of the damage in 2025 didn’t come from some elite hacker exploiting a hidden bug. It came from people being tricked.
Crypto security experts say the biggest threat going forward isn’t faulty code—it’s social engineering, where attackers manipulate users into letting them in.
“Attackers aren’t breaking in,” said Nick Percoco, chief security officer at Kraken. “They’re being invited in.”
Billions Lost — One Conversation at a Time
From January through early December 2025, the crypto industry lost more than $3.4 billion to theft, according to Chainalysis. Nearly half of that came from a single February breach at Bybit.
That attack didn’t start with a complex exploit. Hackers used social engineering to gain access, then injected malicious code that quietly altered transactions and drained funds.
What Is Social Engineering?
Social engineering is a type of cyberattack that targets human behavior, not software. Attackers manipulate victims into sharing sensitive information, clicking malicious links, or approving harmful transactions—often by creating urgency, fear, or excitement.
“The new battleground for crypto security is the mind,” Percoco said.
“Security isn’t about higher walls anymore. It’s about recognizing manipulation.”
How to Protect Yourself in 2026
Tip 1: Automate What You Can
Supply-chain attacks—where hackers compromise trusted software or services—have become a growing problem. One small breach can bring everything down.
Percoco recommends reducing human trust points by:
Automating security checks
Verifying every digital interaction
Using strong authentication everywhere
“Crypto’s weakest link is still human trust, amplified by greed and FOMO,” he said. “Technology helps, but good habits matter more.”
Tip 2: Separate and Lock Down Infrastructure
According to Lisa, security operations lead at SlowMist, hackers increasingly targeted developer ecosystems in 2025. Cloud credential leaks and poisoned software updates created easy entry points.
Her advice for developers and teams:
Lock dependency versions
Verify software integrity
Isolate build environments
Review updates before deploying
Looking ahead, Lisa warns that AI-powered phishing and fake hiring tests will become more common.
For individuals, she recommends:
Using hardware wallets
Avoiding unverified files and links
Double-checking identities across multiple channels
Tip 3: Prepare for AI Deepfakes
AI is making scams more convincing than ever.
In March, several crypto founders reported fake Zoom calls using AI-generated deepfakes, allegedly linked to North Korean hackers.
Steven Walbroehl, CTO of Halborn, says attackers are now launching personalized, context-aware scams that can bypass traditional security training.
His recommendations include:
Proof-of-personhood for important communications
Hardware-based authentication
Transaction behavior monitoring
Pre-agreed verification phrases
Tip 4: Keep Your Crypto to Yourself
Physical “wrench attacks”—where criminals target people directly—surged in 2025. At least 65 cases were recorded, nearly double the previous record.
Former CIA officer Beau advises:
Don’t talk publicly about crypto wealth
Avoid showing off lifestyle or holdings online
Remove personal data from public databases
Use security cameras and home alarms
The goal: don’t make yourself a target.
Tip 5: Stick to the Basics (They Still Work)
David Schwed, former CISO at Robinhood, says the simplest habits still offer the best protection:
Use reputable platforms with regular security audits
Never reuse passwords
Use hardware-based multifactor authentication
Store seed phrases offline and securely
Keep large holdings in a hardware wallet
Minimize funds held on exchanges
The Bottom Line
In 2025, crypto wasn’t broken by code—it was broken by trust.
As scams grow more sophisticated and AI blurs reality, staying safe means slowing down, questioning everything, and building habits that protect you even when emotions run high.
Because in crypto, the most dangerous exploit often starts with a message that sounds friendly.
