Crypto Hacks and Scams Dropped By 27.78% in 2023, $675M Recovered: PeckShield Report

By: Isha Das

In its most recent report, blockchain security firm PeckShield revealed that crypto-related scams and hacks had reduced by 27.78% on a YoY basis, indicating the industry's increasing vigilance against these threats. The report, published on January 29, catalogued all major incidents that occurred throughout 2023.

PeckShield's data shows over 600 major crypto breaches took place in 2023, resulting in an estimated loss of $2.61 billion. In comparison, the figure was significantly lower from the $3.6 billion recorded in 2022. The firm also revealed that of the total losses in 2023, $1.51 billion was as a result of hacks, while scams accounted for about $1.1 billion of the overall losses.

The report further indicated a significant improvement in recovery efforts from previous years. In 2023, approximately $674.9 million was recovered following various incidents, marking an increase from the $133 million recovered in 2022. Law enforcement agencies' intensified efforts, along with enhanced vigilance from the crypto community and proactive efforts by Web3 companies, contributed significantly to this recovery.

The report further highlighted that decentralized finance (DeFi) protocols are the prime targets for cybercriminals, accounting for 67% of the total stolen value. Despite the recovery successes, the high value of losses and the continued targeting of DeFi platforms point to an ongoing need for vigilance and innovation within the sector's cybersecurity measures.