Blockchain security company PeckShield has released data summarizing losses from hacks and scams in 2023, revealing a total loss of $2.61 billion, excluding multichain incidents.
This figure represents a 27.78% decrease compared to the previous year when global cyber thefts amounted to approximately $3.6 billion.
PeckShield’s report, published on January 29, 2024, also highlighted that over $674 million was recovered from more than 600 large-scale hacks they monitored, accounting for 25% of the stolen cryptocurrencies.
This recovery amount marked a significant increase from 2022 when only around $133 million was recuperated from hacks.
The security firm attributed this improvement to more active negotiations with hackers and the emergence of bug bounty programs.
According to the PeckShield team, engaging in active negotiations with hackers and implementing bug bounty programs or on-chain investigations to identify vulnerabilities can enhance security and lead to the return of stolen funds.
Collaborating with centralized exchanges, Tether, and law enforcement to freeze funds whenever they are detected can also contribute to fund recovery.
READ MORE: Tesla’s Bitcoin Sales Cost Company Over $300 Million in Potential Profits
Aside from recovery statistics, PeckShield highlighted various data points, including flash loans, decentralized finance (DeFi), and the volume difference between hacks and scams. Among the hacks in 2023, 40% were flash loan attacks.
Despite improvements in DeFi security, PeckShield emphasized that DeFi remained a prime target for hacks and scams.
CertiK co-founder Ronghui Gu noted the positive developments in blockchain security, citing the growth of bounty platforms and proactive security measures as encouraging signs for the year.
However, PeckShield pointed out that 67% of the losses in 2023 occurred in the DeFi sector, while 33% were in centralized finance.
Hacks accounted for 58% of the losses, with scams contributing to the remaining 42%.
Malicious actors also diversified their crypto targets.
From 2018 to 2021, Bitcoin dominated illicit transaction trading volume, but in 2022 and 2023, stablecoins began to take a larger share of the illicit transaction volume, signaling a shift in the crypto landscape.
Discover the Crypto Intelligence Blockchain Council
