ChainThink report, as reported by Cointelegraph, blockchain security firm Hacken has released its Q1 2026 report indicating that Web3 projects suffered losses totaling $464.5 million due to hacking and fraud in the quarter, with phishing and social engineering attacks accounting for $306 million—the primary source of losses.

A single hardware wallet scam in January resulted in $282 million in losses, representing 81% of the quarter’s total. Additionally, smart contract vulnerabilities caused $86.2 million in losses, while failures in access control (including compromised keys and cloud services) led to $71.9 million in damages.

The report highlights that the largest security incidents predominantly occurred at the off-chain operations and infrastructure layers, areas traditionally beyond the scope of conventional audits. Regulatory frameworks such as MiCA and DORA in Europe are intensifying requirements for security monitoring and incident response, while global regulators are also raising standards for real-time monitoring and emergency response capabilities.