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Web3 bug bounty platform Immunefi has found that hacks accounted for 95 percent of the $3.9 billion (£3.23bn) lost in the crypto industry in 2022.

The figures come from the firm’s new ‘Crypto Losses in 2022 Report’, with fraud, scams, and rug pulls making up the last 5 percent.

According to the report, decentralised finance (DeFi) was the most targeted sector in the crypto industry, suffering 80 percent of the losses, whilst centralised finance firms took the remaining 20 percent hit.

“In total, we have seen a loss of $3.77 billion to hacks in 2022, in 134 specific incidents. This number represents a 58.3% increase compared to 2021, when losses caused by hacks totalled $2.38 billion in 102 incidents,” the report says.

Binance’s BNB Chain and Ethereum were the most targeted blockchains, with the BNB Chain suffering 65 incidents (36%) and Ethereum having 49 incidents (27%).

Mitchell Amador, CEO of Immunefi, said: ““Looking at the losses suffered by the community in 2022 is a reminder of the importance of prioritizing security and implementing robust and consistent measures moving into 2023.”

“By proactively identifying and addressing vulnerabilities, we can protect the community from harm and build trust in the field. As we make the industry safer, everything else can flourish.”

Of the lost funds, only $204 million (£168m) was able to be recovered across 12 specific instances, making up just 5 percent of the year’s total losses.

In a separate report from blockchain security firm CertiK, the company found that December 2022 saw the lowest amount of crypto funds stolen by hacks and exploits.

Of the $62 million (£51m) stolen that month, rug pulls where the most significant exploit in terms of value, netting bad actors over $15 million (£12.5m).