Q3 Report Highlights 75% Decrease in Scam Losses on BNB Smart Chain

Crypto News– According to a report, scams conducted on the 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.

Q3 Report Highlights 75% Decrease in Scam Losses on BNB Smart Chain

Contributed to by the security firm HashDit, an AvengerDAO report attributes this decline to various factors, including increased awareness among community members, a rise in security products flagging malicious websites and activities, and community members identifying scams early and issuing warnings before scammers can succeed. Despite the decrease, rug pulls still accounted for 67% of total losses on the blockchain in the third quarter. According to HashDit, this remains the most common attack vector on BSC. In rug pulls, malicious projects entice investors with marketing efforts but fail to deliver their promised products, and the founders abscond with investor funds.

Reserves and price manipulation were also prevalent on BSC in Q3 2023, as per the report, due to hackers exploiting poorly designed smart contracts.

On October 20, several cybersecurity experts pointed out that malicious individuals might favor BSC (BNB Smart Chain) because it is more cost-effective and is commonly seen as having lower security compared to the Ethereum blockchain. As noted by CertiK security researcher Joe Green, transaction fees on BSC are considerably lower than those on Ethereum, while the network’s stability and speed remain comparable. The researcher believes that this combination means that hackers experience “less financial constraint” when operating on BSC.