Blockchain security auditor Hacken has recently revealed cryptocurrency rug pulls have become the most dominant form of exploits in the crypto industry in Q3 2023, accounting for more than 65% of all hacks.

Hacken released its latest security insights report on October 25, aiming to identify the trends in crypto hacks during quarter and evaluate how affected projects addressed their security vulnerabilities.

“Serial scammers use token factories that exhibit the same behavior to produce fraudulent tokens on a mass scale,” the report disclosed.

Despite the high prevalence, Hacken claims that these types of scams are easy to prevent, as they often display distinct and recognisable characteristics.

Dyma Budorin, the co-founder and CEO of Hacken, stated that investors frequently overlook warning signs such as the absence of audits and other issues due to factors like the fear of missing out (FOMO).

Out of the 78 rug pulls analysed by Hacken in Q3 2023, only 12 reported having undergone an audit.