<p class="is-style-lead">May witnessed a notable decrease in web3 hacks and scams. The total losses reached $19.69 million, marking a significant 79% decline compared to April.</p>



<p>According to data released by blockchain analytics and security platform Beosin EagleEye, a significant decline in rug pulls and scams was recorded in the web3 industry in May. </p>



<p>Within the decentralized finance (<a href="https://crypto.news/eu-study-proposes-default-security-status-for-crypto-assets-legal-recognition-for-defi/">DeFi</a>) sector, several notable hacks occurred in May, demonstrating vulnerabilities that require attention. These incidents included the attack on <a href="https://crypto.news/bsc-based-defi-protocol-level-finance-suffers-a-1m-exploit/">Level Finance</a>, Never Fall, DEI, BFT, SNK, Swap-Lp, <a href="https://crypto.news/tornado-cash-attacker-proposes-to-return-control/">Tornado Cash</a>, CS token, and BSC&#8217;s on-chain LCT project. </p>



<p>Among these, the most actual heist was perpetrated against <a href="https://crypto.news/jimbo-a-defi-protocol-hacked-for-7-5m-in-a-slippage-related-flaw/">Jimbo</a> on the Arbitrum chain, resulting in a loss of approximately $7.5 million.</p>



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<p><a href="https://crypto.news/ledger-ceo-explains-the-companys-path-to-regain-user-trust/">Hardware wallet</a>-related security incidents have gained prominence, posing a growing threat to user funds. Notably, imKey, a leading hardware wallet manufacturer, discovered unofficial stores selling &#8220;activated&#8221; imKey wallets, which increased the risk of fraud through social engineering attacks.&nbsp;</p>



<p>Additionally, security experts identified vulnerabilities in the <a href="https://crypto.news/crypto-wallet-ledger-trezor-database-hack/">Trezor</a> T hardware wallet, emphasizing the importance of physical security for wallet devices.</p>



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<p>The web3 space witnessed several rug pulls and crypto scams during May. Investors in projects such as XIRTAM, <a href="https://crypto.news/wsb-coin-drops-85-following-suspected-rug-pull/">WSB Coin</a>, Swaprum, Fintoch, and BlockGPT were all affected, resulting in losses ranging from hundreds of thousands to millions of dollars. Particularly concerning was the case of Inferno Drainer, a multi-chain scam service provider that stole nearly $5.9 million from almost 4,888 victims, the <a href="https://medium.com/@Beosin_com/blockchain-security-monthly-recap-of-may-19-69m-lost-in-total-979a1dd57b" target="_blank" rel="noopener">report</a> notes.</p>



<p>Beyond individual project attacks, crypto crimes and fraudulent schemes also plagued the industry.&nbsp;</p>



<p>The US Department of Justice (DoJ) uncovered an investment fraud scheme called <a href="https://crypto.news/coindeal-scam-orchestrators-face-charges-over-a-45m-fraud/">CoinDeal</a> that defrauded over 10,000 victims of more than $45 million. Additionally, authorities seized $112 million worth of cryptocurrency linked to a cat-fishing scam. These incidents underscore the persistent threat malicious actors pose in the crypto space.</p>



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<h2 class="wp-block-heading" id="proactive-measures-needed">Proactive measures needed</h2>



<p>Given the rapidly evolving nature of blockchain security threats, industry experts recommend proactive measures to safeguard user assets. Users should increase their anti-fraud awareness and thoroughly research project backgrounds before investing in them.</p>



<p>Furthermore, the research reveals that more than half of the projects targeted in May lacked proper auditing, highlighting the importance of engaging professional audit companies before project launches.</p>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="How to Identify Scam Token - How to Check Scam or Rug Pull on New Crypto" width="1020" height="574" src="https://www.youtube.com/embed/YS7GJtxhUYc?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
</div></figure>



<p>While web3 hacks and scams reduced in May, resulting in a significant decline in financial losses compared to the previous month, the persistence of fraudulent activities necessitates constant vigilance within the crypto community. </p>



<p>The industry must remain committed to enhancing security measures, promoting comprehensive audits, and educating users to fortify the web3 ecosystem against malicious actors.&nbsp;</p>



<p>Despite these ugly incidents, it’s worth noting that <a href="https://crypto.news/crypto-adoption-rises-despite-setback-from-scams-and-rug-pulls-weekly-recap/">crypto adoption</a> has continued to rise, indicating a growing acceptance of digital assets as&nbsp;legitimate investments and transactional tools.&nbsp;&nbsp;</p>



<p>However, these scams and rug-pulls remind investors to be diligent in decision-making. These unfortunate incidents emphasize the importance of staying informed and seeking reliable information from trustworthy sources when investing in these nascent crypto assets. </p>



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Web3 hacks declined in May despite a $19.7m loss

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