Blockchain Hacking and Fraud: A Report on Losses

Hacking and Fraud Losses in 2023

According to the latest report from Immunefi, between January and October 2023, a total of $1.41 billion has been lost in 292 incidents due to hacking and fraudulent activities.

In October 2023 alone, the losses amounted to approximately $22.2 million, primarily attributed to hacking and fraud. The most targeted blockchain networks during this period were BNB Chain and ethereum, accounting for 83.3% of the total losses among the targeted chains.

Specific Incidents and Losses

  • Immunefi reported that BNB Chain experienced the highest number of individual attacks, with 11 incidents, accounting for 45.8% of the overall losses among the targeted chains.
  • ethereum experienced 9 incidents, representing 37.5% of the total losses.
  • Avalanche, a Layer 1 blockchain, had 2 incidents, representing 8.3% of the losses in October.
  • Polygon and Fantom each witnessed 1 incident, representing 4.2% respectively.

Hacking incidents continued to be the primary cause of financial losses, surpassing fraudulent activities, which resulted in a total loss of over $16.35 million for the month.

“In October 2023, hacks continue to be the predominant cause of losses as compared to frauds, scams, and rug pulls. An analysis of the losses shows that fraud accounts for 26.32% of the total losses in October 2023, while hacks account for 73.68%.”

Exploitation of DeFi Platforms

  • DeFi platforms were the primary focus of exploitation in October, representing 100% of the total losses. On the other hand, there were no major exploits reported in CeFi platforms.

Q3 2023: Highest Losses

The Web3 bug bounty platform’s report reveals that Q3 in 2023 recorded the highest losses, primarily driven by over $340 million in September and more than $320 million in July.

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Previous Report on Digital Asset Losses

In September, CertiK, a blockchain security firm, reported that nearly $332 million in various digital assets had been lost to exploits, hacks, and scams.

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By Team