Blockchain security firm PeckShield has released data summarizing the losses from hacks and scams in 2023. According to their report, $2.61 billion was lost during the year, excluding multichain losses.
This figure represents a 27.78% decrease compared to the previous year, 2022 when global cyber thefts amounted to approximately $3.6 billion.
PeckShield’s report also highlighted that over $674 million was recovered from more than 600 large-scale hacks they tracked, accounting for 25% of the stolen cryptocurrency. This recovery amount marks a significant increase compared to 2022, when only about $133 million was recuperated from hacks.
The firm attributes this improvement to more active negotiations with hackers and the rise of bug bounty programs. Additionally, PeckShield mentioned that collaboration with centralized exchanges, Tether, and law enforcement to freeze funds when detected contributed to fund recovery efforts.
Beyond recovery statistics, PeckShield’s data shed light on various aspects of the cryptocurrency landscape, including flash loans, decentralized finance (DeFi), and the distinction between hacks and scams. Notably, 40% of the hacks in 2023 involved flash loan attacks.
Despite claims that improved DeFi security measures reduced cryptocurrency thefts in 2023, PeckShield explained that DeFi remained the main target for hacks and scams. In 2023, blockchain security improved due to the introduction of platforms that educate on security measures in the crypto world.
PeckShield highlighted that 67% of the total losses during the year occurred in DeFi, with the remaining 33% in centralized finance. Of all the losses, 58% were due to hacks, and 42% were because of scams.
In the cryptocurrency world, Hackers have changed who they target. From 2018 to 2021, Bitcoin was used the most for illegal transactions. However, in 2022 and 2023, there was a shift towards stablecoins, which began to comprise a larger portion of the illicit transaction volume.
The report underscores the ongoing challenges and risks associated with cryptocurrency security and the need for continued vigilance and efficient measures to protect the crypto community from cyber threats.
Also Read: How to Protect Against Crypto Scams and Ponzi Schemes
