This is How Much Money was Lost in Crypto Security Incidents in November 2023

Despite the up-trending security investment that’s being made around crypto transactions — to the extent that you can now even use bitcoin for betting —, there are still some bad practices and gray areas that could place your finances in danger.

During November, it is estimated that over $350,000,000 was lost from security incidents affecting the Cryptocurrency industry.

Here at Bookmakers Review, we investigate some of the most recent events that describe how the money was lost and how to mitigate it.

Elevating Concerns

The previous high on record for Crypto security incidents was earlier in the year in September when $ 329 million were the reported losses, but November was nearly a 10% increase on that so concerning times in the industry with confidence low.

The running total of losses for 2023 from security events in cryptocurrency is a staggering $1.7 billion which will need addressing by the industry in 2024 for all users of the digital age.

Hackers Contribute 90% Of the Lost Crypto Funds in November

Hackers contributed over 90% of the total figure to claim the Lion’s share of lost crypto funds in November.

The first $100 million-plus hack was done to the hot wallets of Poloniex. It wasn’t until the final day of November that the Cryptocurrency exchange announced they were resuming normal service with deposit and withdrawal services gradually resuming.

The other $100 million-plus hack happened at HTX with its affiliated cross-chain bridge, HECO Bridge. Coincidentally, both platforms are affiliated with Sun Yuchen.

The other affected platforms that contributed to $335,000,000 lost to hackers were Coinspot, dYdX, and Kyber Swap.

The Kyber Swap attack was estimated to the tune of $45 million and attributed to flash loan attacks. Amazingly, the figures revealed there was one attack on an individual that totaled a $27 million hack.

What is a Flash Loan Attack?

A flash loan attack is an illegal act when individuals exploit the smart contracts that cryptocurrency (Decentralized Finance (DeFi) uses across the Ethereum network. This makes them particularly vulnerable to modifications or violations by unauthorized parties.

About Beosin EagleEye

The compiler of the report was Beosin EagleEye, which is a Blockchain security solutions consultancy. In the report, they’ve recommended the companies named to improve fortified private key management, conduct routine security audits, and renew established emergency response plans, while intensifying security awareness training for the affected and at-risk employees.

A Surge in Phishing Scams Accountable for the Other 10%.

It could easily be lost in the report that there were further losses in the industry due to phishing scams, which are perennially a problem that requires constant attention. Further recommendations from Beosin EagleEye suggested that users should be cautious of any different signing procedures while avoiding engagement with suspicious content.

What is a Phishing Scam?

Phishing is the term used to describe when criminals use scam emails, phone calls, or text messaging to trick their victims.

What Can Be Done to Guard Against the Phishing Scam?

Due diligence and discipline are the best approach to give yourself the best chance of avoiding such scams. To reduce the chances of being phished, you should consider what personal information you post online about yourself and be aware of any other sources posting information about you. This can be achieved by reviewing your privacy settings in your social media accounts

Bookmakers Review Conclusion

When investigating how much money was lost in crypto during November through security incidents, we found a concerning trend throughout 2023, whereby exponentially the problem shows no sign of abating. It was only in September that the record high of $329 million was reached but we found two months later that was usurped by November’s losses.

The auditors of the report, Beosin EagleEye, have recommended that platforms should improve fortified private key management, conduct routine security audits, establish emergency measures, and step up security awareness.

Furthermore, we found one individual suffered a $27million phishing attack and we gave some advice to readers and followers on how to show due diligence and give themselves the optimum cover against such eventualities.

Here at Bookmakers Review, we pride ourselves in being honest and cryptocurrency has a problem dealing with cyder criminality, but more and more the authorities are regulating the industry for our safety.

We recommend you to choose trusted platforms that are rigorously tested by experts in the industry by trusted sources, such as Bookmakers Review, while using the security measures suggested. If you are sensible and take heed of the advice surrounding the industry, problems for users now or in the future will be reduced drastically.