Scams facilitated on BNB Smart Chain (BSC) decreased from $55.4 million in the second quarter of 2023 to $13.6 million in the third quarter, according to an AvengerDAO report contributed to by security firm HashDit. This represents a 75% drop in the amount lost to scams.
According to the security firmโs analysis, the drop can be attributed to various factors, including an increase in overall awareness among community members, an uptrend in security products flagging malicious websites and activities, and community members identifying scams early and giving warnings before the scammers can succeed.
Despite the drop, rug pulls represented 67% of total losses on the blockchain in the third quarter. According to HashDit, this remains BSCโs most common attack vector. With rug pulls, maliciously acting projects entice investors with marketing efforts but donโt deliver their promised products, and the founders run away with investor funds.ย
Reserves and price manipulation were also prevalent on BSC in Q3 2023. According to the report, this is because hackers are exploiting โpoorly designed smart contracts.โ
Related: Exploits, hacks and scams stole almost $1B in 2023: Report
On Oct. 20, various security experts highlighted that malicious actors may prefer BSCย because itโs cheaper and is perceived as having lower security than the Ethereum blockchain. According to CertiK security researcher Joe Green, fees on BSC are much lower than Ethereum, but the networkโs stability and speed are the same. The researcher believes that because of this, hackers face โno financial pressureโ when using BSC.
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