Cryptocurrency Cybercrime Cut by Half in 2023, Crediting Strengthened Industry Security
Summary:
Cryptocurrency-related cybercrimes saw a significant decrease in 2023, with losses dropping by over 50% compared to 2022 due to enhanced industry security, according to a study by blockchain analysis firm TRM Labs. The study noted better asset recovery strategies, increased collaboration, and stronger law enforcement efforts were instrumental in the decrease of digital theft. The report also underlined the importance of maintaining vigilance in the face of evolving cyber threats to ensure the sustaining of this positive trend.
According to a study by blockchain analysis company TRM Labs, crypto-related cybercrimes were cut by over half in 2023 compared to the previous year, indicating a strengthened security landscape within the sector. The firm's findings, unveiled on December 13, attribute this marked reduction in cybercrime to a combination of critical defensive factors. In 2023, cybercriminals absconded with roughly $1.7 billion through crypto breaches, which is a significant decrease from 2022's staggering loss of $4 billion. Out of 160 documented attempts, losses plunged by over 50%. This significant decrease, TRM Labs asserts, is attributed to the implementation of advanced security features including real-time transaction surveillance and irregularity recognition systems. These innovations have fortified digital wallets and trading platforms, creating a robust resistance against potential infiltrations.
As per TRM Labs' study, the number of cryptocurrency cyberattacks in 2023 declined by more than half compared to 2022.
2022 saw turbulence within the crypto sector, facing a major market downturn and a wave of hacks resulting in considerable financial losses. As of the middle of October, blockchain analysis firm Chainalysis had already designated 2022 as a peak year in terms of hacking activity. In its report, TRM Labs accentuates the intensified global efforts by law enforcement agencies to combat cybercrimes in the digital currency arena. Reactive measures, improved asset recovery strategies, and joint operations have increased the likelihood of identifying and apprehending culprits thereby deterring prospective hackers.
The crypto sector, encompassing virtual currency exchanges, blockchain networks, and wallet providers, adopted a unified front in 2023. The increased information sharing regarding potential vulnerabilities, emerging threats, and security incidents strengthened their defense against cyber felons.
Infrastructure breaches accounted for over 60% of the total losses in 2023, TRM Labs states, with private key theft and breaches in seed phrases being notable culprits. Large amounts of monetary losses ensued from wide-scale attacks on chosen targets, with the top ten attacks constituting approximately 70% of the total stolen funds.
Although the firm's report shows a downward trend in hacking incidents, it also underlines the constantly evolving nature of cyber risks. The report emphasizes the necessity for the crypto industry and relevant authorities to remain alert and flexible to sustain this favorable trend in the rapidly changing environment.
Prior to September 2023 the cryptocurrency sector was hit by nearly a billion dollars in losses from cyberattacks, exploits, and schemes, including over $100 million in losses from digital assets. A single instance, the HECO Chain bridge hack, was accountable for stealing more than $80 million.
Published At
12/13/2023 3:44:51 PM
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