Social Engineering: The Biggest Threat to Crypto Security No One Talks About | by Gaze All Over | The Capital | Feb, 2025

Crypto

When we think of crypto hacks, we often picture sophisticated technical exploits — flaws in smart contracts, exchange vulnerabilities, or private keys being cracked. But the Bybit hack in February 2025 proved once again that the most dangerous security flaw isn’t in the code — it’s in human nature.

Bybit reportedly lost 401,000 ETH ($1.5 billion) in an attack that wasn’t the result of a technical exploit, but rather a social engineering scheme. Hackers tricked Bybit executives into authorizing transactions themselves, using deception instead of brute force.

This wasn’t a one-off event.

Social engineering has become one of the most effective attack vectors in crypto, yet it remains one of the least talked about.

It’s time to change that.

Unlike traditional hacks that require technical skill, social engineering relies on psychological manipulation to trick people into giving up sensitive information or performing actions that compromise security.