According to Cointelegraph: In a recent report by AvengerDAO, with contributions from the security firm HashDit, it has been discovered that scams occurring on BSC (BNB Smart Chain) experienced a significant reduction in the third quarter of 2023. The loss from scams decreased sharply by 75%, from $55.4 million in Q2 to a reported $13.6 million in Q3.
This sharp reduction, according to HashDit's analysis, can be correlated to various factors. Prominent among these is a marked increase in overall awareness among the community members, and a surge in security products that actively flag malicious websites and dubious activities. Additionally, early identification and preemptive warnings of scams by community members significantly reduce the chance of fraudulent operations succeeding.
However, despite witnessing a substantial drop, rug pulls accounted for 67% of total losses on the blockchain in the third quarter. Rug pulls, where project founders, after enticing investors through aggressive marketing, fail to deliver on promised products and decamp with the investors' funds, continue to be the most common attack vector on BNB Smart Chain.
The prevalence of reserves and price manipulation was also noted on BNB Smart Chain in Q3 2023. This is attributed to hackers exploiting poorly designed smart contracts. Some security experts pointed out on October 20 that malicious actors might prefer BNB Smart Chain due to its lower costs and perceived lower security standards compared to the Ethereum blockchain.
According to Joe Green from CertiK, a security research specialist, BNB offers the same stability and speed as Ethereum but at much lower fees. It gives hackers a "no financial pressure" environment to operate, thus increasing the appeal of BNB for their illicit activities.
