December 15, 2023
By Sharan Kaur Phillora
TRM Labs, a prominent blockchain security and analytics firm, published a report revealing that the total funds lost to crypto hackers in 2023 plummeted by more than 50% compared to the previous year. This decline is particularly significant, considering the losses fell to approximately $1.7 billion in 2023 from a staggering $4 billion in 2022.
Here’s what we know:
The year 2022 was marked as the “largest year ever for hacking activity,” leading to a concerted response from authorities. However, more than 60% of 2023’s total losses resulted from infrastructure attacks, with private key theft or compromised seed phrases being significant contributors.
It’s noteworthy that large-scale attacks on specific targets constituted a major portion of these losses, with the top 10 hacks accounting for approximately 70% of the total funds stolen. This highlights the need for ongoing vigilance and adaptability in the face of evolving cyber threats.
The report by TRM Labs points to several critical factors that contributed to this decline. Firstly, there have been substantial advancements in security measures within the crypto industry. These enhanced security protocols have been pivotal in deterring and mitigating the impact of hacking attempts. Secondly, there has been an uptick in law enforcement activities against cybercrime. This increased focus by authorities has played a significant role in reducing the success rate of hacking incidents.
Despite the occurrence of around 160 hacking attempts throughout the year, the combined losses from these incidents showed a significant decrease. There was a significant shift in the approach of the crypto industry, which now comprises cryptocurrency exchanges, blockchain networks, and wallet providers.
This sector has adopted a more collaborative stance, sharing information about vulnerabilities, threats, and breach incidents. Such a unified front has created a solid defense mechanism against cybercriminals, enhancing the overall security of the crypto ecosystem.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.