Kerberus Finds Only 13% Of Web3 Security Solutions Provide Real-Time User Protection
In Brief
Kerberus report finds that only 13% of Web3 security solutions provide real-time protection, leaving users vulnerable to attacks despite billions invested in preventative measures.
According to the new report from the Web3 security firm Kerberus titled “The Human Factor: Real-Time Protection Is the Unsung Layer of Web3 Cybersecurity,” only 13% of existing Web3 security solutions provide real-time protection for users. The majority of solutions remain reactive or offer only partial transaction monitoring, highlighting a significant gap in an industry that has invested billions in security infrastructure.
The report notes that during the first half of 2025, over $3.1 billion in losses were recorded, including the $1.46 billion breach of the Bybit exchange, which represents the largest single cryptocurrency heist in history. Excluding this incident, human-targeted attacks such as phishing and social engineering accounted for $600 million in losses, representing 37% of the remaining $1.64 billion.
Most security tools focus on auditing code prior to deployment or analyzing attacks post-event, thereby improving protocol safety, but users remain largely unprotected at the precise moment they conduct transactions.
Kerberus’s report examined the timing and intervention strategies of leading security providers across the market, emphasizing the need for more effective real-time defenses.
“Our analysis shows the industry has a resource allocation problem,” said Alex Katz, CEO of Kerberus, in a written statement. “Companies spend billions on security measures that work before or after an attack, but users still lack protection during the critical moments when they approve a transaction. Attackers exploit this window because it is undefended. Real-time protection only covers a minority of solutions,” he added.
Kerberus Report: Majority Of Web3 Security Providers Rely On Preventative Measures
Kerberus conducted an analysis of 61 prominent Web3 security providers to assess the timing and methods of their interventions. The study revealed that 87% of these providers offer preventative services such as code audits and forensic investigations, while only 13% provide active, real-time threat blocking at the transaction level. Companies were classified using publicly available information regarding their products, deployment models, and whether their solutions prevent attacks before user approval of transactions or merely detect them afterward.
Although preventative security measures are valuable for assessing and mitigating risks, industry data indicates that 90% of exploited smart contracts had already passed security audits. Additionally, 44% of cryptocurrency thefts in 2024 were linked to private key mismanagement, highlighting that a portion of losses occur in areas beyond the reach of code verification.
In April 2025, a US investor lost $330 million in Bitcoin due to social engineering, with no compromise to the wallet or underlying code. Research shows that even with user training programs, phishing click rates remain between 7% and 15%, demonstrating that users continue to be vulnerable to manipulation despite existing technical safeguards.
“Most security tools operate outside the transaction window,” said Danor Cohen, CTO of Kerberus, in a written statement. “They provide valuable audits and post-breach investigations, but these need to be complemented by real-time solutions, which interpret user intent at the wallet level during a live transaction and perform a fast, deep scan without interrupting the user. That’s a highly challenging technical problem that requires sophisticated scam detection IP, which explains why real-time protection is offered by only 13% of providers,” he added.
Real-Time Protection Needed As Web3 Security Struggles To Keep Pace With Growing User Base
The Web3 security industry initially developed to address the priorities of its early, experimental phase, when vulnerabilities in smart contract code represented the primary risk. (At that time, companies focused on auditing contracts and investigating breaches, building their business models around these services.
That approach was appropriate when the user base was small and technically proficient. However, Web3 has since grown to 820 million active wallets, with 59% of users managing their own private keys. Although threats have evolved, much of the security infrastructure has remained unchanged.
Trust is essential for Web3 adoption, but users currently lack confidence in the safety of their funds. In traditional finance, consumer protection is built into the system: banks monitor transactions, block suspicious activity, and reimburse victims of fraud. Users rely on these safeguards because they prevent catastrophic losses from a single error.
Web3, by contrast, exposes users to permanent loss from a single mistake, with no automatic recourse. This environment discourages retail participation in markets that require constant vigilance and limits institutional investment in systems without fundamental fraud protections. Establishing real-time protection as standard infrastructure is therefore critical for expanding the user base.
Kerberus released these findings to provide data-driven benchmarks for real-time protection within the Web3 security landscape, highlighting the need for solutions that safeguard users at the moment of transaction.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
