BSC Reduces Security Breach Losses in 2023 Despite Increase in Cyber Crime Cases

BNB Smart Chain (BSC) on Monday said that the contract blockchain saw a steady decrease in financial losses from security breaches in 2023. The Binance-backed blockchain network published a report on Monday stating that the total financial loss dropped to just $97 million in 2023.

BSC sees a drop in losses from security incidents

BSC on Monday quoted a report by AvengerDAO’s Security, stating that the blockchain network saw a year-on-year decrease of 85% in the overall damage resulting from security breaches.

According to the research, there has been a huge fall in both scams and hackers since 2022. In 2023, scams accounted for $87.9 million, a 54% decrease, and cyberattacks for $73.2 million, a 91% decrease.

BSC’s losses narrow despite an increase in security breach incidents

The report quoted by BSC however, points towards a peculiar trend. The overall security incidents reported on BSC amounted to 414. This which represents a 44% increase from 2022.

Despite this increase, the overall amount lost was $161.2 million, showcasing the end of a three-year upward trend. More astonishingly, the total losses decrease to just $97 million when the top three outlier incidents—Fintoch, IPP, and Stake—are taken out of the equation.

When examining the attack vectors, hacks (50.72%) and frauds (49.03%) were nearly evenly divided per the report.

Scams have caused a greater overall financial loss of $87 million, than hacking ($73 million).

The blockchain’s three biggest segments of loss included Rugpulls, Ponzi, and Hot Wallets. Rugpulls accounted for the largest portion of losses amounting to about 35.18%. Rugpulls greater vulnerability stems from the fact that con artists use increasingly sophisticated techniques to muddle code and money transfers.
With 22.53% of all smart contracts deployed on BSC, Ponzi was the second-largest contributor. Hot wallet compromises within well-known platforms like CEXs and other Entities were the third-largest contributors.

Cyber attacks on blockchain networks decrease globally but fears loom overall

Crypto and blockchain-related cyber attacks saw a significant decrease in 2023. However, according to a report by Fox Business, the larger sector still faces a lot of uncertainty.

Experts are warning that criminals are becoming more adept at hiding their trails, according to Fox News. Crypto consumers lost $1.8 billion in 2023 as a result of numerous hacks, exploits, frauds, and rug pulls.  Malicious actors are always present where there is a chance for a reward, and blockchain networks are increasingly attracting both of them.

There is a severe skills gap in the cybersecurity industry today. Because even fewer cybersecurity experts are familiar with blockchain technology or the unique security threats associated with the developing Web3 decentralized economy, this dilemma is especially pressing in the field of blockchain security.