BNB Smart Chain Scam Losses Plummet 75% in Q3: Report

Decrease in Scams

Scams on the BNB Smart Chain (BSC) dropped significantly in the third quarter of 2023, according to a report by AvengerDAO and security firm HashDit. The report reveals that losses from scams decreased by 75%, falling from $55.4 million in the second quarter to $13.6 million in the third quarter.

Factors Behind the Drop

The report highlights several factors that contributed to the decrease in scams. Firstly, there has been an increase in awareness among community members, who are becoming more vigilant in identifying and reporting scams. Additionally, security products have improved in flagging malicious websites and activities. This combined effort has helped to minimize the success rate of scammers.

Rug Pulls Remain a Concern

Despite the drop in overall scam losses, rug pulls continue to be a major issue on the BSC. In fact, rug pulls accounted for 67% of total losses in the third quarter. Rug pulls occur when fraudulent projects entice investors with false promises and then disappear with their funds.

Reserves and Price Manipulation

The report also highlights the prevalence of reserves and price manipulation on the BSC in Q3 2023. Hackers are taking advantage of poorly designed smart contracts to exploit these vulnerabilities.

BSC's Appeal to Hackers

Experts have noted that malicious actors may prefer the BSC over the Ethereum blockchain due to its perceived lower security and lower fees. While fees on the BSC are significantly lower than on Ethereum, the network's stability and speed remain comparable. This provides hackers with a financially advantageous environment for their activities.

Overall, the decrease in scam losses on the BNB Smart Chain is a positive development. However, it is crucial for community members and security products to remain vigilant in order to further reduce the success rate of scams and protect investors.