BNB Smart Chain Sees 85% Decline in Losses to Security Incidents in 2023: Report

A security report published today revealed losses incurred on BNB Smart Chain in 2023 reached over $161 million, compared to $1.1 billion in the previous year.

The security report was published by AvengerDAO in collaboration with Hashdit, Certik, Ancilia, and Salus Security.

Despite the decrease in total losses incurred, there were 414 security incidents on BSC, a 44% year-one-year increase from 2022. Out of the 414 security incidents, 315 happened on DeFi projects.

BSC reported a significant improvement in Q4, 2023, with a 64% decrease in fiat losses, dropping from around $43.7 million in Q3 to approximately $15.6 million.

This positive change is attributed to a 51% reduction in hack incidents, with Q4 seeing 86 incidents compared to 130 in Q3.

BSC represented 3.7% of the total fiat loss across all chains in Q4 of 2023, securing the 5th position among various chains. Ethereum led with 65%, followed by Tron at 13.6%, Arbitrum at 5.3%, and Bitcoin at 4.5%.

As reported earlier, a total of estimated $2billion were stolen in crypto in 2023.

Hacks Remain Dominant on BNB Smart Chain

The report categorizes the types of attacks and threats on BSC, highlighting hacks as the predominant security incident, constituting 50.72%, closely followed by scams at 49.03%.

Scams were responsible for $87.9 million, reflecting a 54% decrease, while hacks accounted for $73.2 million, a substantial 91% decrease in losses.

Despite these positive trends, the report emphasizes the need for ongoing vigilance, recognizing that scammers and hackers may adapt their methods. The BNB Chain Core Development commented on the report:

“We greatly appreciate the input and feedback from the AvengerDAO committee members Hashdit, Certik, Ancilia, and Salus, who are all leaders in the crypto security space that play an integral role in maintaining the integrity of our industry. These reports help provide the community with critical security information while AvengerDAO monitors and identifies risks to mitigate threats on BSC.”