An Immunefi research claims that black hat hackers are now focusing on DeFi services.
According to reports, the decentralized trading environment has lost $265 million, an increase of around 225.4% from its 2022 level.
Two Exploits Cause a Loss of 49.6%
The analysis, titled Immunefi’s Crypto Losses in Q2 2023, reaffirmed the ongoing difficulties the cryptocurrency business faces, particularly the rising incidence of hackers.
The bug bounty and security services company declared in no uncertain terms that hackers were intensifying their efforts to extort illegal profits from the budding business, concentrating especially on the DeFi sub-sector.
According to the research, almost $265 million was stolen by hackers in 81 separate incidents during the second quarter of 2023.
Out of this, crypto scams became the most prevalent attack type, showing a startling 225.4% growth from the previous year.
Crypto scams alone were responsible for losses above $44.9 million in Q2 2023, compared to the $13,818,000 reported in Q2 2022.
18 unique incidents involved these hackers behaviors. In addition, there was a considerable year-over-year increase in the number of single events, which increased from 49 to 81 in Q2 2023, an increase of 11% over the course of the two quarters.
Hacks accounted for the biggest share of losses sustained by cryptocurrency businesses and individuals, accounting for 83.1% of thefts.
Contrarily, hackers, scams, and rug pulls as a group were responsible for 16.9% of the entire effect.
Insights into the cryptocurrency hacking scene were provided by Immunefi, which claimed that the Fintoch rug pull and Atomic Wallet us attacks were responsible for a 49.6% loss in total value.
The Lazarus Group, which has ties to North Korea, cleared more than $100 million from Atomic Wallet our platform as a result of a cryptocurrency breach.
However, the Fintoch tournament brought in roughly $31.6 million, bringing the combined total for the two events to just under $132 million.
For holding their digital assets over the DeFi protocol, investors were given 1% daily interest via the Fintoch platform.
While the centralized finance (CeFi) environment has also been the target of cybercriminals, DeFi has been a blatant bait for bad actors.
Exchanges for cryptocurrencies reported a net loss of $37 million, which was split among just two events.
Despite being small, it represents a significant advancement for the CeFi sector given that no cryptocurrency hacks were reported in Q2 2022.
Overall, the statistics are not that horrible. Losses due to DeFi are down 65.9% from the same time last year, while losses due to hacks are down 66.4%.
BNB and ETH: Chains with the Biggest Impacts
The most affected blockchain protocols were also discussed in the research.
With 10 instances, or 12.1% of all losses reported across the chain, Arbitrum placed third-farthest, which is nonetheless concerning.
Nevertheless, a portion of the stolen money has been found. Immunefi reports that about $10.4 million has so far been recovered, although this is still a little amount because it only accounts for about 3.9% of the stolen money.
The greatest sum retrieved in the shared snapshot is $5.5 million for the Deus Finance project. Atomic Wallet, meanwhile, has only been successful in recovering $1 million of the monies that were stolen.
Hackers have stolen $30 billion in cryptocurrency Since 2012
A recent study revealed that over $30 billion in Bitcoin has been stolen in 1,102 occurrences that were documented from 2012 to the present.
The top five most frequent hacks, according to the blockchain security company SlowMist, include contract weaknesses, rug pulls, flash loan assaults, frauds, and private key leaks.
The overall number of events included 85 NFT hacks, 217 ETH ecosystem attacks, 162 BNB ecosystem hacks, 118 exchange hacks, and 119 EOS ecosystem hacks.
The biggest significant losses over the past ten years totaled more than $10 billion in exchange losses.
The number of hacking incidents with losses over $1 billion peaked in the early 2010s and then increased from 2019 to 2021.
According to the report, security incidents have decreased in frequency somewhat since 2022.
Losses from cybercrime are still anticipated to rise
Black hat hackers continue to create novel and increasingly sophisticated ways to defraud organizations and people of their data, money, and identities despite strong security measures.
The cost of cybercrime is anticipated to increase globally, from $8.44 trillion in 2022 to $23.84 trillion over the next five years, according to Statista’s Cybersecurity Outlook.
This is a record number, and as more individuals become interested in the cryptocurrency market, consumers will need to exercise extra caution while disclosing their wallets and personal information to hackers.
The creator and CEO of Immunefi, Mitchell Amador, commented on the Crypto Losses report and emphasized the need for cryptocurrency investors to thoroughly investigate projects before engaging with them. This is a result of the more sophisticated techniques used by criminals.