Crypto Hacks In 2023 Caused $1.9 Billion Losses

Key Points:

• Hacken’s 2023 report points to access control issues causing almost half of crypto hacks.
• Despite a $1.9 billion loss decline, the report notes a 14% increase in attacks, signaling persistent concerns in crypto security.

The year 2023 brought both challenges and advancements, as per the latest Hacken Security Report. Notably, nearly half of the crypto hacks during this period were linked to access control issues, underscoring the pressing need for robust security measures in the digital asset space.

Declining Financial Losses Amidst Rising Crypto Hacks

The report reveals that despite a decrease in overall losses, with the crypto market facing a $1.9 billion hit, a 93.6% decline from 2022, the landscape remains concerning. The Lending and Borrowing sector, particularly smart contract-based money markets, experienced the highest impact, closely followed by bridges and exchanges.

However, analysts express reservations about the nature and quantity of incidents in 2023, pointing out a 14% increase in crypto hacks. Singapore and the USA emerged as significant cyber-exploitation hotspots, possibly due to heightened fintech activity, as detailed in the comprehensive report.

A noteworthy concern is the surge in rug pulls, surpassing all other exploits combined, with Solana becoming a focal point. A staggering 100,000 new tokens on Solana in December foreshadow this trend, with investment in public security measures proving crucial to mitigating exit scam risks.

Furthermore, the report emphasizes a critical vulnerability: access control issues, identified as the most damaging in 2023. Only 10% of exploited smart contracts underwent any form of audit, revealing a concerning gap in security practices.

BNB Chain, Ethereum, and Arbitrum emerged as prime targets for hackers, a trend attributed to developers hesitating to audit their protocols.