Agreed. Wallet security needs to improve.

That said, my company was recently scammed with a phishing attack where we were sent an invoice from one of our vendors. Someone had hacked the vendors accounting firm and we paid it to an different account number, get this… in the same bank. So, scammers were able to create an account, with kyc in the same bank. Crazy.

We are struggling to get the money back now.

Use an escrow? It's pretty simple to build reversible transactions for an erc 20 token on EVM.

Obviously you would introduce a centralized arbitrator. It's a solved problem in crypto except nobody uses it.