2023 Cyber Crime Cases Rise, yet BSC Successfully Mitigates Security Breach Losses

2023 Cyber Crime Cases Rise, yet BSC Successfully Mitigates Security Breach Losses


BSC Reports Significant Decrease in Security Breach Losses

According to a report published by BNB Smart Chain (BSC), the blockchain network has seen a steady decrease in financial losses resulting from security breaches in 2023. The total financial loss dropped to just $97 million, marking an 85% decrease compared to the previous year.

Reduction in Scams and Cyberattacks

The report reveals that both scams and cyberattacks on the BSC have significantly decreased since 2022. Scams accounted for $87.9 million, a 54% decrease, while cyberattacks amounted to $73.2 million, a 91% decrease.

Increase in Security Breach Incidents but Narrower Losses

Despite an increase in reported security incidents on the BSC, the overall amount lost was $161.2 million, showcasing a downward trend. However, when excluding the top three outlier incidents, the total losses decreased to just $97 million.

Hacks and Frauds as Major Attack Vectors

The report highlights that hacks (50.72%) and frauds (49.03%) were nearly evenly divided as attack vectors on the BSC. Scams caused a greater overall financial loss of $87 million compared to hacking ($73 million).

Main Segments of Loss on BSC

The three biggest segments of loss on the BSC were Rugpulls, Ponzi schemes, and Hot Wallet compromises. Rugpulls accounted for the largest portion of losses at about 35.18%, followed by Ponzi schemes at 22.53%. Hot wallet compromises within well-known platforms contributed to the third-largest portion of losses.

Global Decrease in Cyber Attacks on Blockchain Networks

While cyber attacks on crypto and blockchain networks saw a significant decrease in 2023, experts warn of rising threats. Criminals are becoming more adept at hiding their trails, resulting in $1.8 billion in losses for crypto consumers. The cybersecurity industry faces a skills gap, particularly in blockchain security.

Hot Take: Continued Progress in BSC Security

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The BSC’s report on the decrease in financial losses from security breaches is a positive sign for the blockchain network. Despite an increase in reported incidents, the narrower losses indicate improved security measures. However, the overall crypto and blockchain sector still faces challenges as criminals adapt to new techniques. The industry needs more cybersecurity experts with knowledge of blockchain technology to effectively combat these threats and ensure the safety of users’ assets.

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