A flash loan attack is a type of DeFi attack in the blockchain-coded security system. Hackers would borrow funds without pledging collateral. Then they would manipulate the price of the crypto assets and resell them. DeFi lending system is pretty helpful for individuals seeking funds. However, this has led to the rise of flash loan attacks.
Flash loan attacks make up for 60% of DeFi attacks, since any hacker can perform easily perform them and get away with it. So, before launching any smart contracts, it is crucial that it undergoes a security audit. A security audit will help identify security loopholes and reduce the risks of data breaches.