- The first half of 2023 witnessed a 75% decrease in losses from Web3 scams.
- The likely cause is an improvement in security measures and regulatory policies.
- Surprisingly, DeFi suffered the brunt of the security breaches this year.
In the rapidly evolving world of Web3, security has been a significant concern. However, the first half of 2023 brought some relief as losses from Web3 scams saw a significant 75% decline.
A recent report by a blockchain security firm provides insights into the decline and the changing landscape of Web3 security.
Web3 Scam, Hack, and Rug Pull Losses Drop in 2023
According to a report by a blockchain security firm Beosin, total losses from hacks, phishing scams, and rug pulls in Web3 reached $655.61 million in the first half of 2023.
This figure marks a significant decrease compared to the previous year, where the total loss from attacks was approximately $1.91 billion in H1 2022 and about $1.69 billion in H2 2022. The decline in losses indicates improved security measures and regulatory policies in Web3.
Based on statistics from the Beosin EagleEye platform, the report provides a detailed breakdown of the types of attacks and their corresponding losses. Out of the total losses, 108 attacks resulted in a loss of approximately $471.43 million.
At the same time, phishing scams accounted for a loss of approximately $108 million. Additionally, there were 110 rug pulls, leading to a total loss of approximately $75.87 million.
DeFi Suffers Most Scams and Hacks in 2023
The report also highlights the types of projects that suffered attacks. Specifically, Decentralized Finance (DeFi) sustained the brunt of the losses.
In the first half of 2023, 85 security incidents occurred in the DeFi sector, accounting for 78.7% of the total attacks. The total loss in DeFi reached $292 million, representing 62% of the total loss.
These findings conflict with the narrative that DeFi is safer than centralized platforms due to its open and decentralized nature. They suggest that the DeFi space still needs to mature.
On the Flipside
- At least a part of these hacks is due to state-affiliated actors, including North Korea’s Lazarus Group. Most recently, some analysts implicated the group in the Atomic Wallet hack.
- Despite billions of dollars in hacks, the report highlights that victims recovered 45.5% of stolen assets.
Why You Should Care
The risk of hacks and scams is one factor that is keeping a portion of the mainstream investors from investing in crypto. Therefore, dealing with security issues is key to driving adoption.
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