2023 has marked a turning point, showcasing remarkable advancements in the fight against cyber thefts. PeckShield, a blockchain security firm, has revealed some eye-opening statistics that paint a picture of resilience and recovery in the crypto sphere.
The year 2023 saw a substantial decrease in total global cyber thefts, with losses amounting to $2.61 billion (excluding Multichain unauthorized withdrawals). This figure represents a 27.78% drop compared to 2022, where the losses totaled around $3.6 billion. This decline is a testament to the growing effectiveness of security measures in the crypto world.
But here's the kicker: a whopping $674 million was successfully recovered from over 600 large-scale hacks. This recovery, equating to around 25% of the stolen crypto, marks a significant increase from 2022, where only about $133 million was retrieved. This leap in recovery is attributed to more active negotiations with hackers, the rise of bug bounty programs, as well as enhanced collaboration with law enforcement and centralized exchanges.
PeckShield's report also sheds light on the nature of these hacks. Flash loan attacks accounted for 40% of the hacks in 2023. Despite improvements in DeFi (decentralized finance) security, it remained a prime target, with 67% of the losses occurring in DeFi and the remaining 33% in centralized finance. The report also notes that 58% of the losses were due to hacks, while 42% resulted from scams.
An interesting shift has been observed in the types of cryptocurrencies targeted by malicious actors. From 2018 to 2021, Bitcoin dominated the trading volume for illicit transactions. However, in 2022 and 2023, stablecoins began to take a larger share of this dubious market.
