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 Threats

Cryptocurrency is an ideal target for cybercriminals: there are many ways to steal it, and its very difficult for the victims to ever recover it. And some hackers make an absolute killing from it — getting tens, or sometimes hundreds of millions of dollars from a cryptoexchange attack. This post looks at the Top-5   show more ...

biggest ever heists in the relatively short history of cryptocurrencies. And theres a bonus at the end: an amazing story of a cryptocurrency robbery worthy of a Netflix show… 5. Skeleton key Victim: KuCoin cryptoexchange When: September 26, 2020 Loss: around $285 million On the night of September 25/26, 2020, security officers at the Singapore-based company KuCoin detected a series of abnormal transactions from several hot wallets. To halt the suspicious transactions they transferred all remaining assets from the compromised hot wallets to cold storage. The whole incident lasted about two hours from detection to completion. During this time, the attackers managed to withdraw approximately $285 million in several cryptocurrencies. The investigation revealed that the cybercriminals had accessed the private keys of the hot wallets. One of the primary suspects is Lazarus Group, a North Korean APT cybergang. This is because the attackers employed a multi-stage algorithm to launder the loot, similar to the schemes used in previous hacks by Lazarus group. First, they ran equal amounts of crypto through a tumbler (a tool for mixing cryptocurrency funds with others to obscure the trail), then transferred the cryptocurrency through decentralized platforms. Despite the scale, this heist was not the end of the cryptoexchange. The day after the theft, KuCoin CEO Johnny Lyu promised during a livestream to reimburse the stolen funds. Lyu kept his word, and by November 2020 hed tweeted that 84% of the affected assets had been returned to their owners. The remaining 16% were covered by KuCoins insurance fund. 4. Money out of thin air Victim: Wormhole cross-chain bridge When: February 2, 2022 Loss: $334 million Next in our Top-5 is a heist that used a vulnerability in Wormhole, the cross-chain bridging protocol. The cybercriminals were aided by the fact that the platforms developers had made their program code public. But first things first… Wormhole is a tool that mediates cryptocurrency transactions. Specifically, it allows users to move tokens between the Ethereum and Solana networks. Technically, the exchange works like this: tokens are frozen in one chain, while so-called wrapped tokens of the same value are issued in the other. Wormhole is an open-source project with its own repository on GitHub. Shortly before the heist, the developers placed code there to fix a vulnerability in the protocol. But the attackers managed to exploit the vulnerability before the changes took effect. The bug allowed them to bypass the transaction verification on the Solana side and issue 120,000 wrapped ETH (worth around $334 million at the time of the attack) without freezing the equivalent collateral in the Ethereum blockchain. The cybercriminals transferred two-thirds of the total amount to an Ethereum wallet, and used the rest to buy other tokens. Wormhole publicly appealed to the attackers to return the stolen funds and detail the exploit for a $10 million reward. The cybercriminals ignored the generous offer. The day after the heist, Wormhole tweeted that all funds had been restored and the bridge was operating as before. The financial hole was closed by Jump Trading — the company that had bought Wormholes developer six months before the incident. Judging by open-source information, the thieves remain unknown. 3. Three-year heist Victim: Mt.Gox cryptoexchange When: February 2014 Loss: $480 million The history of Mt.Gox begins way back in 2007, when it was a platform for exchanging cards from the Magic: The Gathering game. Three years later, amid the growing popularity of cryptocurrencies, the site owner, US programmer Jed McCaleb, decided to turn it into a cryptoexchange, but then sold the service to French developer Mark Karpelès in 2011. Just two years later, Mt.Gox was trading around 70% of the worlds bitcoin. The rapid rise was followed by a crippling crash. On February 7, 2014, the exchange suddenly blocked all bitcoin withdrawals. The company blamed the move on technical issues. Outraged customers gathered outside the headquarters of Mt.Gox in Tokyo, demanding their money back. Their protest fell on deaf ears. The remarkable thing about this story is that the Mt.Gox heist began in 2011. Back then, unknown hackers got hold of the private keys to a hot wallet on the exchange and began to gradually siphon off bitcoin from it. By 2013, the cybercriminals had deposited 630,000 BTC into their accounts. Mt.Gox finally ended trading on February 28, 2014, when Karpelès declared it bankrupt and apologized for the weaknesses in the system that had wiped out roughly 750,000 BTC of customers funds and 100,000 BTC of its own. The amount of stolen funds is usually given at around $480 million — this is the value of the total number of stolen tokens at the exchange rate on the day before the exchange filed for bankruptcy — February 27. Note, though, that in the time after Mt.Gox ceased trading and before it declared bankruptcy, the bitcoin price fell heavily. If calculated at the exchange rate on February 6 (the day before the exchange actually shut down), the loss would be around $660 million. However, both of these figures are tentative: they dont factor in the three-year duration of the heist during which time the exchange rate fluctuated wildly. So its hard to pinpoint the exact amount of damage. Bitcoin exchange rate in February 2014. Source How was the attack even possible? According to former employees, the companys management was rather negligent when it came to many important issues. For example, Mt.Gox had serious problems with financial reporting. Moreover, a proper quality-and-security audit of the code was never undertaken: there was no version control system, for instance. Prosecutors charged Mt.Gox owner, Karpelès, with embezzlement of around $3 million worth of clients funds. But they failed to prove this in court. In the end, Karpelès only received a suspended sentence of two years and six months for data manipulation and was acquitted on other charges. 2. Almost half a billion Victim: Coincheck cryptocurrency exchange When: January 26, 2018 Loss: $496 million Coincheck is one of Japans largest cryptoexchanges. In 2018, cybercriminals managed to steal from it more than 500 million NEM tokens worth roughly the same amount in dollars. The company claimed that their security system was robust, and didnt report how exactly the intruders carried out the attack. That said, some experts believe that the cybercriminals may have gained access to the private keys of the Coincheck hot wallets with the aid of malware embedded on a computer in the companys office. The attackers also created their own site selling NEM tokens for bitcoin and other cryptocurrencies at a 15% discount. As a result, the NEM exchange rate fell sharply, and Coincheck lost around $500 million, which, however, did not force the exchange to close. Whats more, the criminals couldnt be traced. The exchange had to suspend operations for a while and promised to compensate clients with its own funds. NEM exchange rate after the Coincheck incident. Source 1. Job offer with a surprise Victim: Ronin Network blockchain platform When: March 23, 2022 Loss: $540 million Ronin Network was specifically created by Sky Mavis for the play-to-earn game Axie Infinity, allowing players to buy the in-game currency Smooth Love Potion (SLP). In late March 2022, unknown attackers stole from Ronin a record $540 million worth of cryptocurrency. They were aided by spyware and the magic of social engineering. The targeted attack was aimed at Sky Mavis employees, one of whom took the bait (most likely on LinkedIn). Having passed a selection process, one of senior engineers received a job offer in the form of a PDF file with spyware inside. This enabled the thieves to take control of four of the networks private validator keys. To gain access to the companys assets, they needed to compromise at least five of the nine validators. As just mentioned, the spyware helped them get hold of four keys. The fifth they got hold of due to an oversight by the company itself, which had authorized Axie DAO (decentralized autonomous organization) to sign off on transactions to help Ronin Network mitigate user volume, and then forgot to revoke the permission. Sky Mavis, however, quickly recovered from the incident. In June 2022, it relaunched the blockchain platform and began compensating affected players. NFT character from blockchain-based game Axie Infinity. Reproduction Bonus. A hack with a refund Target: Poly Network cross-chain protocol When: August 10, 2021 Loss (later recovered): $610 million As a bonus story, lets finish with another huge crypto heist — which ended with the return of every cent of the loot. Heres what happened… Poly Network is yet another protocol for implementing blockchain interoperability. In summer 2021, it witnessed one of the biggest heists in cryptocurrency history. An unknown hacker, exploiting a vulnerability in Poly Network, stole more than $600 million in various cryptocurrencies. Poly Network appealed to the perpetrator on Twitter to return the stolen tokens. To everyones amazement, the hacker made contact and agreed. They proceeded to transfer the stolen tokens bit by bit, dividing them into several unequal parts. The online exchange between the hacker and Poly Network went on for quite some time. During it, the attacker stated he wasnt interested in money and had only carried out the heist for ideological reasons. As a mark of gratitude, Poly Network dropped its claims against him, guaranteed his anonymity, offered a reward of $500,000 and even invited him to become its chief security consultant. It also launched a bug-bounty program worth $500,000. No real moral to the story, but… Weve listed here only the Top-5 crypto heists, all of which targeted major organizations. But of course many minor incidents affect ordinary users all the time. Therefore, every investor needs to take steps to secure their assets. Here are some helpful tips: Choose platforms for trading and other operations carefully: read feedback and reviews, and, if possible, consult with experienced users you trust. Dont give anyone the login details for your account on the exchange or your wallet credentials. Remember to keep not only your passwords and private keys secret, but also your seed phrase. Store your main cryptocurrency savings in cold wallets: unlike hot ones, they dont need to be permanently online and so are more secure in general. If you do use a hot wallet, be sure to enable two-factor authentication. Beware of phishing. To learn how to spot cryptocurrency hunters, see this post. Use a reliable solution that protects financial transactions, prevents malware from stealing your wallet password or private key, and warns you about scam sites.

 Trends, Reports, Analysis

Crooks most frequently used the brand name in their attempts to steal personal and payment information from marks between July and September, with DHL accounting for 22% of all worldwide phishing attempts intercepted by Check Point.

 Malware and Vulnerabilities

A new strain of the FurBall Android spyware was found targeting Iranian citizens in mobile surveillance campaigns conducted by APT-C-50, aka Domestic Kitten, an Iranian state-sponsored gang. The newest malware version comes with code obfuscation tactics, including using obfuscated class names, strings, logs, and   show more ...

server URI paths. Domestic Kitten has been launching mass-surveillance operations since at least 2016.

 Trends, Reports, Analysis

The findings from research by Northwave reveal the deep marks that a ransomware crisis leaves on all those affected. It also shows how their IT and security teams can turn into disarray long after the crisis itself has passed.

 Malware and Vulnerabilities

Ursnif has joined the likes of Emotet, Qakbot, and TrickBot by turning itself into a capable backdoor that drops next-stage payloads. The new variant, dubbed LDR4, has now been observed using recruitment and invoice-related email lures—as an initial intrusion vector—to download a maldoc, which fetches and launches the malware.

 Threat Intel & Info Sharing

The Cisco product vulnerabilities both impact the AnyConnect Secure Mobility Client for Windows. They can be exploited by a local, authenticated attacker to execute arbitrary code and copy files to arbitrary locations with elevated privileges.

 Breaches and Incidents

The Australian Institute of Company Directors (AIDC) had some solid names lending support to the launch of the institute’s new set of “cybersecurity governance principles” but the event did not start on time due to the hacking incident.

 Malware and Vulnerabilities

Apple on Monday shipped a major iOS update with fixes for at least 20 documented security defects, including a kernel flaw that’s already being actively exploited in the wild.

 Malware and Vulnerabilities

Trustwave SpiderLabs noted a spike in malspam campaigns by the Emotet botnet. In this attack wave, attackers are reportedly using invoice-themes phishing lures with password-protected archive files. These files drop CoinMiner and Quasar RAT to take over compromised systems.

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Red Hat Security Advisory 2022-7087-01 - 389 Directory Server is an LDAP version 3 compliant server. The base packages include the Lightweight Directory Access Protocol server and command-line utilities for server administration.

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Red Hat Security Advisory 2022-7108-01 - SQLite is a C library that implements an SQL database engine. A large subset of SQL92 is supported. A complete database is stored in a single disk file. The API is designed for convenience and ease of use. Applications that link against SQLite can enjoy the power and   show more ...

flexibility of an SQL database without the administrative hassles of supporting a separate database server. Issues addressed include a null pointer vulnerability.

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Red Hat Security Advisory 2022-7111-01 - Samba is an open-source implementation of the Server Message Block protocol and the related Common Internet File System protocol, which allow PC-compatible machines to share files, printers, and various information. Issues addressed include an information leakage vulnerability.

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Red Hat Security Advisory 2022-7137-01 - This is a kernel live patch module which is automatically loaded by the RPM post-install script to modify the code of a running kernel. Issues addressed include privilege escalation and use-after-free vulnerabilities.

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Red Hat Security Advisory 2022-7110-01 - The kernel packages contain the Linux kernel, the core of any Linux operating system. Issues addressed include code execution, information leakage, memory leak, privilege escalation, and use-after-free vulnerabilities.

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Red Hat Security Advisory 2022-7129-01 - Git Large File Storage replaces large files such as audio samples, videos, datasets, and graphics with text pointers inside Git, while storing the file contents on a remote server. Issues addressed include a denial of service vulnerability.

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Red Hat Security Advisory 2022-7146-01 - The kernel packages contain the Linux kernel, the core of any Linux operating system. Issues addressed include privilege escalation and use-after-free vulnerabilities.

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Red Hat Security Advisory 2022-7089-01 - KSBA is a library to make X.509 certificates as well as the CMS easily accessible by other applications. Both specifications are building blocks of S/MIME and TLS. Issues addressed include code execution and integer overflow vulnerabilities.

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Red Hat Security Advisory 2022-7090-01 - KSBA is a library to make X.509 certificates as well as the CMS easily accessible by other applications. Both specifications are building blocks of S/MIME and TLS. Issues addressed include code execution and integer overflow vulnerabilities.

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Ubuntu Security Notice 5227-3 - USN-5227-1 fixed vulnerabilities in Pillow. It was discovered that the fix for CVE-2022-22817 was incomplete. This update fixes the problem. It was discovered that Pillow incorrectly handled certain image files. If a user or automated system were tricked into opening a specially-crafted   show more ...

file, a remote attacker could cause Pillow to hang, resulting in a denial of service. It was discovered that Pillow incorrectly handled certain image files. If a user or automated system were tricked into opening a specially-crafted file, a remote attacker could cause Pillow to crash, resulting in a denial of service. This issue ony affected Ubuntu 18.04 LTS, Ubuntu 20.04 LTS, and Ubuntu 21.04. It was discovered that Pillow incorrectly handled certain image files. If a user or automated system were tricked into opening a specially-crafted file, a remote attacker could cause Pillow to crash, resulting in a denial of service, or possibly execute arbitrary code. It was discovered that Pillow incorrectly handled certain image files. If a user or automated system were tricked into opening a specially-crafted file, a remote attacker could cause Pillow to crash, resulting in a denial of service. It was discovered that Pillow incorrectly handled certain image files. If a user or automated system were tricked into opening a specially-crafted file, a remote attacker could cause Pillow to crash, resulting in a denial of service, or possibly execute arbitrary code.

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Ubuntu Security Notice 5696-1 - Multiple security issues were discovered in MySQL and this update includes new upstream MySQL versions to fix these issues. MySQL has been updated to 8.0.31 in Ubuntu 20.04 LTS and Ubuntu 22.04 LTS. Ubuntu 18.04 LTS has been updated to MySQL 5.7.40. In addition to security fixes, the updated packages contain bug fixes, new features, and possibly incompatible changes.

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Red Hat Security Advisory 2022-7088-01 - KSBA is a library to make X.509 certificates as well as the CMS easily accessible by other applications. Both specifications are building blocks of S/MIME and TLS. Issues addressed include code execution and integer overflow vulnerabilities.

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Tech giant Apple on Monday rolled out updates to remediate a zero-day flaw in iOS and iPadOS that it said has been actively exploited in the wild. The weakness, given the identifier CVE-2022-42827, has been described as an out-of-bounds write issue in the Kernel, which could be abused by a rogue application to execute arbitrary code with the highest privileges. Successful exploitation of

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Cybersecurity researchers have disclosed details about a pair of vulnerabilities in Microsoft Windows, one of which could be exploited to result in a denial-of-service (DoS). The exploits, dubbed LogCrusher and OverLog by Varonis, take aim at the EventLog Remoting Protocol (MS-EVEN), which enables remote access to event logs. While the former allows "any domain user to remotely

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Introduction In many ways, the software supply chain is similar to that of manufactured goods, which we all know has been largely impacted by a global pandemic and shortages of raw materials.  However, in the IT world, it is not shortages or pandemics that have been the main obstacles to overcome in recent years, but rather attacks aimed at using them to harm hundreds or even thousands of

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Two point-of-sale (PoS) malware variants have been put to use by a threat actor to steal information related to more than 167,000 credit cards from payment terminals. According to Singapore-headquartered cybersecurity company Group-IB, the stolen data dumps could net the operators as much as $3.34 million by selling them on underground forums. While a significant proportion of attacks aimed at

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A high-severity vulnerability has been disclosed in the SQLite database library, which was introduced as part of a code change dating all the way back to October 2000 and could enable attackers to crash or control programs. Tracked as CVE-2022-35737 (CVSS score: 7.5), the 22-year-old issue affects SQLite versions 1.0.12 through 3.39.1, and has been addressed in version 3.39.2 released on July 21

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The Hive ransomware-as-a-service (RaaS) group has claimed responsibility for a cyber attack against Tata Power that was disclosed by the company less than two weeks ago. The incident is said to have occurred on October 3, 2022. The threat actor has also been observed leaking stolen data exfiltrated prior to encrypting the network as part of its double extortion scheme. This allegedly comprises

2022-10
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