Scams Surge as Web3 Threats Evolve
Decentralised finance (DeFi) platforms are embracing proactive security measures to combat a sharp rise in crypto scams, with 2024 witnessing a record $9.3 billion in losses in the United States alone, according to the FBI. From honeypot tokens that trap investors to sophisticated contract exploits and spoofed tokens, even experienced traders are falling victim to an increasingly hostile Web3 environment.
Common scams include “honeypots” that allow users to buy tokens but prevent withdrawals, and token impersonation where fake coins mimic legitimate assets like Tether (USDT), often leading to “address-poisoning” attacks. Nearly 43 percent of new crypto scams have been linked to rug pulls, with honeypots accounting for a third, making the DeFi landscape fraught with hidden dangers.
Building Security into DeFi Architecture
To address these threats, projects are embedding security features directly into their protocols rather than relying solely on user vigilance. One notable development is the partnership between blockchain security suite Web3 Antivirus (W3A) and DeFi aggregator 1inch. This collaboration reinforces 1inch’s commitment to a “security-first” approach by enhancing its real-time token and transaction scanner.
W3A’s system inspects every contract and wallet address a 1inch user interacts with, using a risk-scoring engine to flag suspicious activity before a transaction is signed. If a user attempts to trade a dubious token, an immediate warning is issued, reducing the chance of falling for scams.
Crucially, this security enhancement does not interfere with user experience. W3A’s software development kit (SDK) and application programming interface (API) can be integrated into any decentralised exchange (DEX) or wallet in under two hours, ensuring threat detection operates silently and efficiently in the background without disrupting the interface or slowing performance.
Cross-Chain Coverage with Invisible Protection
One of the key strengths of the W3A integration is its compatibility across all Ethereum Virtual Machine (EVM) chains supported by 1inch, including Ethereum, Base and Unichain. This means users benefit from uniform protection regardless of where they trade, with the security layer running discreetly in the background.
The real-time threat scanner performs critical tasks such as identifying honeypots by simulating trades, detecting look-alike tokens used in phishing attacks, and flagging rug-pull risks. It also uncovers smart contracts with predatory tax structures and screens for blacklisted wallets connected to hacks or sanctions.
According to 1inch, the system provides users with the insights they need to make informed decisions before signing transactions. This proactive approach significantly reduces the likelihood of scam execution, marking a shift from reactive to preventative security in the DeFi space.
Security Becomes Core Infrastructure in DeFi
The partnership between 1inch and W3A is part of a wider industry trend where threat detection is becoming a standard feature rather than an optional add-on. W3A’s services are available to any exchange, wallet or decentralised app (DApp) through APIs and SDKs. It also offers Scam Pulse, a dashboard tracking active phishing campaigns and malicious token trends in real time.
These tools not only help businesses protect their platforms and users, but also assist in regulatory compliance by identifying and blocking sanctioned addresses. W3A reports that its security checks have already been applied to tens of millions of wallets through various fintech and DeFi partners, reflecting strong demand for embedded protection.
From User Vigilance to Built-In Defence
The growing adoption of proactive threat detection marks a turning point in Web3 security. Rather than depending on users to identify threats or conducting damage control after a scam, DeFi platforms are incorporating security intelligence directly into the transaction process.
The collaboration between 1inch and Web3 Antivirus serves as a clear example of how the industry is evolving. By making threat detection automatic, fast and seamless, DeFi platforms are giving users the tools they need to navigate an increasingly complex digital landscape with greater confidence and safety.
