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Losses caused by crypto hacking attacks will decrease by almost 50% in 2023

Blockchain intelligence firm TRM Labs says losses from crypto cyberattacks have fallen by more than 50% in 2023 compared to 2022, attributing this decline to improvements in industry security.
relationship TRM Labs’ report, released today, cites its research into the key factors behind the significant decline in cyber theft. The report finds that losses from 160 crypto projects fell to approximately $1.7 billion in 2023, less than half of the $4 billion stolen from internet protocols in 2022.
According to TRM Labs, this decline is due to the cryptocurrency industry’s advanced security measures that combine real-time transaction monitoring and anomaly detection systems, strengthening digital wallets and exchange platforms.

In 2022, the cryptocurrency industry experienced a downturn and major theft due to cryptocurrency exploits and hacking. As of mid-October, Chainalytics had already labeled 2022 as follows: “Biggest year ever for hacking activity.”
The TRM Labs research report reveals that law enforcement agencies around the world are increasing their efforts against cybercrime in the digital currency sector. Collaborative actions, rapid responses, and improved asset recovery tactics have deterred potential hackers by increasing the chances of detection and prosecution.
In 2023, the industry of crypto exchanges, blockchain networks and wallet providers took a collaborative approach, creating a solid defense against cybercriminals by sharing information about vulnerabilities, threats and breaches.
TRM Labs said more than 60 percent of total losses in 2023 will result from infrastructure attacks, specifically related to stealing private keys or hijacking seed phrases. The majority of casualties resulted from large-scale attacks against specific targets; The top ten hacks were responsible for approximately 70% of the total stolen funds.
While the report notes a decrease in hacking incidents, it also highlights the changing nature of cyber threats. He emphasizes that the cryptocurrency industry and law enforcement must remain vigilant and adaptable to maintain this positive trend in a rapidly changing environment.
In the first eight months of the year, the industry lost nearly $1 billion due to hacking, exploits and fraud. Among these hacks Loss of digital assets over $100 millionand the HECO Chain bridge hack alone was responsible for the theft of over $80 million.

Translation by Walter Rizzo

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