In a notable downturn, scams operating on the BNB Smart Chain (BSC) saw a substantial reduction in losses, plummeting from $55.4 million in the second quarter of 2023 to just $13.6 million in the third quarter, as revealed in a report by AvengerDAO, in collaboration with security firm HashDit. This marks a remarkable 75% decrease in the funds lost to scams.
Several factors were identified by the security firm as contributing to this decline. Increased awareness within the BSC community played a pivotal role, with a surge in security products effectively flagging malicious websites and activities. Furthermore, vigilant community members became more adept at detecting scams early and issuing warnings before fraudsters could make off with ill-gotten gains.
Despite the substantial drop in scam losses, the most prevalent form of attack on the BSC in the third quarter remained “rug pulls,” accounting for 67% of total losses. These rug pulls involve deceitful projects luring investors with enticing marketing campaigns but ultimately failing to deliver their promised products, allowing the founders to abscond with investor funds.
The third quarter also witnessed a prevalence of reserves and price manipulation on the BSC. The report attributed this to the exploitation of poorly designed smart contracts by hackers.
It’s worth noting that security experts have pointed out that malicious actors may prefer the BSC due to its lower cost and perceived lower security compared to the Ethereum blockchain. CertiK security researcher Joe Green highlighted the substantially lower fees on the BSC compared to Ethereum while maintaining network stability and speed. This cost advantage on the BSC might reduce financial pressure on hackers, making it a more attractive playground for their activities.