According to a recent report from blockchain security firm Immunefi, funds lost to cryptocurrency fraud and hacks have decreased by 12% year-over-year. Released on May 30, the report states that $52 million was lost due to fraudulent activities and hacks throughout May, a decline from over $59 million during the same period last year. This amount also represents a 28% reduction from the losses reported in April.

The report underscores a consistent trend of reduced losses from fraud and hacking in the Web3 industry. Immunefi had previously observed a 23% year-over-year decrease in losses for the first quarter of 2024. This ongoing reduction was corroborated by CertiK’s April report, which noted the lowest recorded losses for that month.

May’s losses were primarily due to two major security breaches. Gala Games, a Web3 gaming protocol, was hit by a hack that resulted in roughly $21 million in losses. Additionally, Sonne Finance fell victim to a smart contract exploit, leading to a $20 million loss. Combined, these two incidents contributed to 78% of the total losses for the month.

Ethereum and BNB Smart Chain were the most frequently attacked networks in May, being the targets of 62% of the attacks. It is noteworthy that all attacks were aimed at decentralized protocols, with no centralized exchanges reporting any losses due to attacks. This data highlights the ongoing vulnerabilities in decentralized finance (DeFi) systems and the continuous efforts needed to enhance security measures within the sector.