Scam Losses on BNB Smart Chain Drop Significantly in Q3 2023
Scams facilitated on BNB Smart Chain (BSC) saw a remarkable decrease, dropping from $55.4 million in the second quarter of 2023 to $13.6 million in the third quarter, according to a report by AvengerDAO contributed to by security firm HashDit. This significant decline represents a 75% drop in losses attributed to scams.
HashDit, a leading security firm, suggests that the decrease in scam losses can be attributed to several factors:
- An increase in overall awareness among community members.
- An uptrend in security products flagging malicious websites and activities.
- Community members identifying scams early and issuing warnings before scammers succeed.
However, despite the drop in overall scam losses, the report reveals that 67% of total losses on the BSC in the third quarter were due to rug pulls. HashDit states that rug pulls continue to be the most common attack vector on the BSC. In rug pulls, malicious projects lure investors with deceptive marketing efforts but fail to deliver promised products, ultimately absconding with investor funds.
Prevalence of Reserves and Price Manipulation on BSC
In addition to rug pulls, the report highlights that reserves and price manipulation were prevalent on the BSC in Q3 2023. Hackers exploited poorly designed smart contracts, leading to these types of attacks.
Security experts have pointed out that malicious actors may prefer BSC due to its perceived lower security and cost-effectiveness compared to the Ethereum blockchain. CertiK security researcher Joe Green noted that BSC offers lower fees than Ethereum without compromising network stability and speed. Green believes that this lack of financial pressure on BSC makes it an attractive option for hackers.
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