Web3 Loses $890 Million to Security Breaches, Scams, and Rug Pulls in Q3 2023
In a recent research report by Beosin EagleEye platform, it was revealed that Web3 suffered losses of approximately $890 million in the third quarter of 2023 due to security breaches, phishing scams, and rug pulls. The report identified 43 hacker attacks that resulted in a total loss of around $540 million. Phishing scams accounted for an approximate loss of $66.15 million, while rug pulls within projects led to a total loss of approximately $280 million.
DeFi Sector Most Targeted with 67.4% of Incidents
The Decentralized Finance (DeFi) sector was the most frequently targeted, accounting for 67.4% of all incidents. Among the various project types, public chains experienced the highest losses, with Ethereum alone accounting for $227 million. Ethereum also had the highest number of security incidents during the quarter, with 16 reported.
Private key leaks were identified as the most costly attack method, causing losses of $223 million. Alarmingly, hackers still controlled around $360 million of the stolen funds, representing 67% of the total.
Only 10% of Stolen Funds Recovered in Q3 2023
Efforts to recover stolen assets were largely unsuccessful, with only 10% of the stolen funds retrieved during the quarter. The audit landscape showed that both audited and unaudited projects were equally affected by these security incidents.
As blockchain technology continues to revolutionize industries, the persistent threat of cyberattacks and scams remains a significant concern.
Hot Take: Web3 Suffers Massive Losses Due to Security Breaches
In the third quarter of 2023, Web3 experienced substantial financial losses amounting to approximately $890 million. These losses were a result of various security breaches, phishing scams, and rug pulls. The DeFi sector was particularly targeted, accounting for 67.4% of all incidents. Ethereum, being a popular public chain, suffered the most significant losses and had the highest number of security incidents.
Efforts to recover stolen funds were largely unsuccessful, with only 10% of the funds retrieved. This highlights the persistent threat that cyberattacks pose to the blockchain industry. As more industries adopt blockchain technology, it becomes crucial to prioritize security measures to protect against these threats.
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