Study: Financial Losses on BNB Chain Due to Hacks and Scams Fell by 85% in 2023

Study: Financial Losses on BNB Chain Due to Hacks and Scams Fell by 85% in 2023

In 2023, financial losses on the BNB Smart Chain due to exploits or breaches fell by 85% to $161.1 million, according to the findings of a new Avenger DAO study report. The study data also shows that Q2 of 2023 was the costliest quarter, with approximately $69.5 million lost across 127 incidents.

Scams Were the Costiliest Attack Vector in 2023

According to a survey study conducted by Avenger DAO and its partners, the value of assets lost to hacks and other security breaches on the BNB Smart Chain in 2023 fell by 85% to $161.1 million. In comparison, a little over $1.1 billion was lost in far fewer incidents in 2022.

The study data also shows Q2 of 2023 to be the costliest that year with approximately $69.5 million having been lost across 127 incidents. On the other hand, the last quarter of 2023 had the least damages with $15.6 million from 86 incidents.

However, unlike in 2021 and 2022 when hacks accounted for a disproportionate share of the financial losses, scams ($87.9 million) were the attack vector with the highest loss. In contrast, losses associated with hacks fell from $870.8 million in 2022 to $73.2 million in 2023.

Hacking Incidents on the Rise

While losses to hacking incidents were lower in 2023, the study data suggests that criminals are increasingly favouring this type of attack.

“By comparing the increased percentages, it is evident that Hacks are growing at a concerning rate as well. This is likely supported by the fact that tracing the hacker’s real identity can be challenging with complicated use of money mixers and non-KYC exchanges,” the Avenger DAO study report said.

Meanwhile, when comparing losses across chains in Q4 of 2023, the data ranked Ethereum first with 66% of all fiat losses in that period. Tron came second with a share of 13.62% of the losses, while Arbtrum came third with 5.33%. BNB Smart Chain accounted for only 3.81% of the financial losses in the same quarter.

Despite incurring financial losses exceeding $160 million, Avenger DAO said its cooperation with other players played a part in the recovery or freezing of funds totalling $7.3 million on the BNB Smart Chain alone. Overall, approximately $55 million was recovered

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