The latest report from blockchain security firm Immunefi reveals a significant reduction in crypto-related fraud and hacks. According to the May 30 report, the total losses in May amounted to $52 million, a 12% decrease from the $59 million lost during the same month last year. This figure also marks a notable 28% decline from the losses reported in April.

This downward trend in crypto losses highlights a broader pattern of decreasing incidents of hacks and fraud within the Web3 industry. In March, Immunefi reported a 23% year-over-year decline in losses for the first quarter of 2024. Additionally, an April report from CertiK indicated that the month experienced the lowest losses ever recorded.

The May report from Immunefi attributes the majority of the month's losses to two major incidents. The first was a hack on the Web3 gaming protocol Gala Games, which resulted in approximately $21 million in losses. The second significant event was a smart contract exploit targeting Sonne Finance, causing $20 million in losses. Combined, these two incidents accounted for 78% of the total losses in May.

The report also identified Ethereum and BNB Smart Chain as the most targeted networks in May, with 62% of the attacks directed at them. Notably, all the attacks were against decentralized protocols, and no funds were lost from centralized exchanges during this period.

Fraud continues to represent a smaller portion of the overall losses. In May, only $1.7 million, or 13.6%, of the total losses were attributed to fraud, with the remaining losses resulting from hacks and exploits.

While Immunefi's report did not delve into the reasons behind the decline in monetary losses from exploits, previous analyses suggest that advancements in security technology and enhanced law enforcement practices have contributed to this positive trend. For instance, Blockaid's April report claimed that its software has led to the shutdown of some crypto drainers, reducing one type of threat faced by crypto users.

As the industry continues to evolve, these reductions in fraud and hacking incidents may indicate an improvement in the overall security landscape of the crypto space, providing a more secure environment for users and investors.