Socket Protocol, an interoperability protocol, reported the security breach in a recent post to its followers and strongly advised users to take immediate action to avoid potential loss of funds.
“Socket has experienced a security incident affecting wallets that have unlimited authorization for Socket contracts,” the post reads.
Socket attacks advise users to take action during a security breach.
A recent post thread by X (formerly Twitter) explains that Socket specifically targeted cryptocurrency users with unlimited permissions for socket contracts. Users who believe they may be affected are urged to suspend approval permissions until the issue is officially resolved.
“Due to recent attacks, Socket urges all users to revoke all authorizations to prevent loss of funds.”
We state that we have suspended all affected contracts immediately prior to this. It also confirms that no further action is required from the user.
According to Dune’s data, the victim who suffered the most from the attack so far suffered $656,945 in losses.
However, Socket promises to provide regular updates to its users. The reply to the X thread also warns to be on the lookout for fraudulent socket accounts attempting phishing activities.
Read more: 15 most common cryptocurrency scams to watch out for
Last year, losses from cryptocurrency hacks exceeded $1 billion
This comes after it was revealed that a huge amount of money was stolen through cryptocurrency hacking in 2023.
On January 12, BeInCrypto reported that blockchain security company SlowMist estimated total losses from hacks of the top ten cryptocurrencies in 2023 to exceed $1 billion.
Mixin suffered a cloud breach that cost customers approximately $200 million. The organization agreed to compensate 50% of the losses. The second largest hack stole $197 million from Euler Finance, a decentralized financial lending protocol.
Read more: What is Rug Pull? Guide to Web3 Scams
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