Main page » Blockchain News » BNB Smart Chain scam losses dropped 75% in Q3: Report
Blockchain News

BNB Smart Chain scam losses dropped 75% in Q3: Report

BNB Smart Chain scam losses dropped 75% in Q3: Report

According to an AvengerDAO report contributed to by security firm HashDit, scams facilitated on BNB Smart Chain (BSC) decreased from $55.4 million in the second quarter of 2023 to $13.6 million in the third quarter. This represents a 75% drop in the amount lost to scams.

The drop can be attributed to various factors, including an increase in overall awareness among community members, an uptrend in security products flagging malicious websites and activities, and community members identifying scams early and giving warnings before the scammers can succeed, according to the security firm’s analysis.

Amount lost to BSC scams in 2023. Source: HashDit

Rug pulls represented 67% of total losses on the blockchain in the third quarter, despite the drop. This remains BSC’s most common attack vector, according to HashDit. With rug pulls, maliciously acting projects entice investors with marketing efforts but don’t deliver their promised products, and the founders run away with investor funds.

Reserves and price manipulation were also prevalent on BSC in Q3 2023 because hackers are exploiting “poorly designed smart contracts,” as stated in the report.

Related: Exploits, hacks and scams stole almost $1B in 2023: Report

On Oct. 20, various security experts highlighted that malicious actors may prefer BSC because it’s cheaper and is perceived as having lower security than the Ethereum blockchain. According to CertiK security researcher Joe Green, fees on BSC are much lower than Ethereum, but the network’s stability and speed are the same. The researcher believes that because of this, hackers face “no financial pressure” when using BSC.

Magazine: Slumdog billionaire: Incredible rags-to-riches tale of Polygon’s Sandeep Nailwal