As Crypto Frauds Are Increasing, Web3 Ecosystem Also Lost A Large Amount to It in 2022

As technology is progressing, digital fraud is increasing. Just when cryptocurrency became popular, a rise in crypto frauds could be seen and now Web3 ecosystems are also experiencing frauds continuously. These frauds are stripping away the hard-earned money of many people all around the world. Web3 lost billions in 2022 and Immunefi, Web3 bug bounty provider, released the exact number of money that Web3 lost in 2022. It wasn't a matter of thousands or millions of dollars, because the Web3 ecosystem has lost $3,948, 856, 037 billion to be exact to different frauds in 2022. The report by Immunefi also put forward the names of blockchains that were targeted the most by fraud actors. These blockchains were BNB Chain and Ethereum. These blockchains experienced unique frauds, BNB Chain with 65 and Ethereum with 49 frauds last year.

Even if the money lost seems big, the percentage has decreased since 2021 to 51.2% (which was $8,088,338,239). In 2022, the Web3 ecosystem lost a total of $3,948,856,037 (i.e. 3.94 billion) to crypto frauds but now there is a prominent decrease in it. These stats are still a huge security risk to many organizations who do trading through the Web3 ecosystem. So it is best for them if they find a new security strategy for the new crypto-threats, or their data will be exposed to crypto frauds.

Even with all these frauds happening at Web3, researchers have predicted that the Web3 market is going to grow from $3.2 billion in 2021 to $81.5 billion by 2030. As the value of the Web3 market will increase, cybercriminals will find new and innovative ways for fraud. Truth is that in these big markets, frauds happening are inevitable. Web3 has to take steps to decrease fraud, even if ceasing them is impossible. Web2 applications were nothing for cybercriminals to hack, but in Web3 everything is much more advanced. As Web3 is fairly new to the crypto market, it is hard for users to adjust to it and criminals take advantage of this vulnerability. Over time, users will learn how to handle Web3 and the amount of loss will keep on decreasing.

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by Arooj Ahmed via Digital Information World