New Report Reveals Crypto Hacking Losses Reduce by 50% in 2023
TRM Labs, a blockchain intelligence enterprise recently reported a decline in hack attacks. The report indicates that during 2023 crypto losses taking place from hack attacks dropped by 50%.
The analysts attribute the decline to better security measures, law enforcement, and active communication between market participants. The firm also noted that in comparison to 2022, the total quantity of attacks on the crypto sector declined by 50% in comparison to 2022.
The report was published recently and indicated a total of 160 attacks on various blockchain projects.
$1.7 Billion in Crypto Losses
The accumulated losses in these attacks account for a total of $1.7 billion for 2023. In comparison, the total amounts of losses for 2022 were estimated to be around $4 billion from various internet protocols.
Analysts retained that the decline in these attacks is attributed to a robust approach towards improved security measures. In this manner, DeFi protocols have managed to monitor and detect unwarranted changes in real-time.
Furthermore, blockchain projects have also increased the security checks for digital wallets and trading platforms.
TRM analysts reported that 2022 was downtime for crypto sector that led to various thefts, exploits, and hack attacks. Chainalysis noted that October noted the biggest amount of hacking activity taking place in 2022.
At the same time, TRM noted that law enforcement firms around the globe have increased their efforts to fight cybercrime within the digital asset market. This has led to formation of collaborative action, instant response, better detection, and legal action to discourage hackers from launching new attacks.
For 2023, the aggregate of crypto exchanges, digital wallets, and blockchain networks also started to cooperate. In this manner, main services providers in the digital currency sector were able to collect and share information regarding any vulnerability, detect breach points, and form a united front against hackers to ensure better defense against potential security threats.
TRM Labs has reported more than 60% in losses since 2023. The majority of these attacks affected core framework such as private key theft and stolen seed phrases.
The largest losses account for the parts from specified targets ranked in top 10 hack attacks. This consists of 70% of total losses in stolen funds out of whole for 2023.
TRM Analyst Asks Crypto Firms and Investors to Stay Alert Against Attacks
TRM analysts have reported a visible decline in the total amount of cybersecurity attacks. However, the report also advised investors and firms against new types of hack attempts.
On this account, the firm noted that all stakeholders of the blockchain sector and law enforcement agencies should remain vigilant to detect any uncertainties. At the same time, the report also noted that stakeholders must be more adaptable keeping in view the swift changes taking place in the landscape.
The report noted that for 2023, the first 8 months accounted for loss of $1 billion on account of various hack attacks, scams, and exploits. These hacks are inclusive of $100 million in digital currency losses from the Poloniex exchange and $80 million in stolen funds from HECO network.
On the other hand, statistics issued by Cybersecurity firm CertiK indicates $997 million in losses traced back to flash loan attacks exploits and exit scams during 2023.
