$720 Million Lost via 117 Hacking Incidents in Q3 of 2023 — Study

During Q3 of 2023, determination were a full of 117 hacks successful which $720 cardinal was stolen via entree power breaches and rug pulls among different information incidents, a caller survey has found. While the losses ($49.80 million) from rug-pull incidents are importantly little than the $449 cardinal mislaid via entree power and reentrancy, the survey information shows rug-pulling incidents arsenic the astir prevalent signifier of attack.

Human Factor ‘Most Exposed Part of the Crypto Industry’

According to the latest Web3 information study by the blockchain information auditor Hacken, determination were a full of 117 hacks successful Q3 of 2023 portion the worth of funds stolen successful this play topped $720 million. For context, determination were 131 hacks successful the preceding 4th yet lone $327 cardinal was stolen.

As noted successful the survey report, entree power breaches were again the astir financially damaging attacks “causing $449 cardinal successful losses from conscionable 8 incidents.” The study added that the category’s mean losses of tens of millions of dollars per incidental again amusement that “the quality origin remains the astir exposed portion of the crypto industry.”

While the losses ($49.80 million) from rug-pull incidents are importantly little than the $449 cardinal mislaid via entree power and reentrancy, the survey information shows rug-pulling incidents arsenic the astir prevalent signifier of attack.

“Another glaring inclination is the prevalence of rug pulls – a benignant of exit scam characterised by a abrupt withdrawal of liquidity, often accompanied by changes successful tokenomics oregon the project’s astute contract. Understanding the anatomy of this scam is important due to the fact that they marque up astir exploits this year. Despite the comparatively debased mean cheque cashed by the malicious actors of $638,594, it’s 1 of the simplest scams to prevent,” the study stated.

Projects With Poor Audit Scores

On wherefore cybercriminals inactive siphon idiosyncratic funds via this tactic, the Hacken study revealed that astir 15%, oregon 12 retired of 78, examined rug propulsion incidents had been audited. Furthermore, the study noted that galore users often place a project’s mediocre audit score. However, specified a people whitethorn sometimes bespeak an adjacent deeper problem.

To illustrate, the Hacken study cites the audit findings from Magnate Finance, which unequivocally declared that “a deployer could manipulate the token.” Unfortunately, galore users “continued to enactment successful protocol for astir 3 months aft the audit results.” As a result, the deployer was capable to “remove LPs successful aggregate transactions” and much than $5 cardinal was stolen.

Meanwhile, the study urged users to analyse token ownership, liquidity conditions, and audit outcomes earlier investing their funds. Users should besides prioritize projects with renounced admin controls and community-led finances, the study added.

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