Crypto hacking losses plunge by nearly 50% in 2023 - Research - Is Blockchain Web 3.0?
Crypto hacking losses plunge by nearly 50% in 2023 – Research

Cryptocurrency Industry Security Improvements Lead to 50% Decline in Hacking Losses

Blockchain intelligence firm TRM Labs has released a report indicating that losses from cryptocurrency hacking in 2023 have decreased by more than 50% compared to 2022, thanks to enhanced security measures.

According to the report published on Dec. 13, the improved security has resulted in losses from 160 hacks to crypto projects dropping to approximately $1.7 billion in 2023, a stark contrast to the $4 billion stolen from internet protocols in 2022.

TRM Labs credits the drop in cyber theft to the incorporation of real-time transaction monitoring and anomaly detection systems, as well as stronger digital wallets and exchange platforms across the web 3.0 blockchain industry.

In 2022, the crypto industry was in a downturn and experienced substantial losses from crypto exploits and hacks. By mid-October, Chainalysis had already labeled 2022 as the “largest year ever for hacking activity.”

Cybercrime Prevention in the Digital Currency Sphere

TRM Labs’ research report notes that law enforcement agencies worldwide have ramped up their efforts to combat cybercrimes in the digital currency space. Collaborative actions, rapid responses, and improved asset recovery strategies have increased the chances of detection and prosecution, dissuading potential hackers.

In 2023, the industry, which comprises cryptocurrency exchanges, blockchain networks, and wallet providers, adopted a collective strategy by exchanging information about vulnerabilities, threats, and breach incidents, forming a solid defense against cybercriminals.

TRM Labs reported that more than 60% of the total losses in 2023 were due to infrastructure attacks, particularly those involving the theft of private keys or compromises in seed phrases. A considerable portion of the losses stemmed from large-scale attacks on particular targets, with the top ten hacks accounting for about 70% of the total funds stolen.

Despite the report highlighting a decrease in hacking incidents, it also emphasizes the changing nature of cyber threats. It stresses that the cryptocurrency industry and law enforcement must stay vigilant and flexible to preserve this positive trend in a rapidly evolving web 3.0 landscape.

In the first eight months of the year, the crypto industry experienced nearly $1 billion in losses due to hacks, exploits, and scams. These hacks included over $100 million in digital asset losses, with the HECO Chain bridge hack alone accounting for the theft of more than $80 million. This highlights the importance of web 3.0 blockchain security and the need to explore new internet web 3.0 solutions, such as artificial intelligence and solid web 3.0 protocols, to protect digital assets and tokens in the internet of things web 3.0.

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