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 Threats

Hardware wallets are considered to be the most reliable cryptocurrency storage solution of all. A special device that signs all of its owners blockchain operations offline looks so much more reliable than online storage or computer apps. After all, we hear news of hacks and bankruptcies of online cryptocurrency   show more ...

exchange platforms nearly every month, while apps are clearly vulnerable to regular computer threats like malware. While these considerations are reasonable, investments cant be totally safeguarded by simply having hardware crypto wallets, for their owners, too, are vulnerable to a number of attacks. Accordingly, these need safeguarding against… Hot and cold, hardware and software wallets Before we proceed to analyze the risks, lets briefly recap the difference between the various types of wallets. For starters, no wallet stores the crypto assets themselves. The information about the assets is recorded in the blockchain, while a crypto wallet is just secure storage for the respective private (secret) key. The owner needs the key to record a new transaction to the blockchain — that is, to make a cryptocurrency transfer. Aside from the secret key, crypto wallets usually store a non-secret public key used to receive transfers. There are multiple ways to store a private key: Encrypted on the server. These are online or custodial wallets offered by popular exchanges, including Binance and Coinbase. In a mobile app on a computer or smartphone. On a separate offline device. As an alphanumeric sequence written down on a sheet of paper. In the first and second instances, the key storage is always online; therefore, the key can be used to sign a transaction in the blockchain at any time. These are hot wallets. To send money using options three or four, certain extra actions are required: connecting your device to a computer or phone, or entering information from paper. These are cold wallets. A dedicated stand-alone key-storage device is called a hardware wallet; applications designed to store keys on regular computers and smartphones are software wallets. A hybrid of two and three makes for another viable — if somewhat exotic — option: storing the key in a separate smartphone always kept offline. The mix will produce a software wallet, albeit a cold one. A few words about paper wallets. A paper wallet is a printout of your keys and/or seed phrase (more on it later), and its uses are limited to receiving money or serving as a backup. To spend your money, you have to submit your private key to an online software solution. Thats when your cold wallet turns into a hot one. Types of hardware wallets Hardware wallets most commonly look like USB memory sticks or bulky car keys. They usually feature a screen for checking transactions. To sign a transaction, you connect the wallet to a computer or smartphone, initiate a transfer from the computer or smartphone, verify the information on the wallet screen, and confirm the action by entering the PIN code or simply pressing a button. The main advantage of hardware wallets is that they sign operations without sending your private key to the computer — thereby protecting the data from the simple theft mechanisms. In addition, many wallets contain extra functionality and can be used as hardware keys for two-factor authentication. There are also wallets resembling a bank card, and wallets approaching the offline phone format, but these are less common. The latter have a fully functional screen and allow signing transactions with QR code scanning. Many of these models have no ports at all other than the charger port, so nothing connects them to the outside world except for the camera and screen. Risk number one: loss or destruction The hardware wallet owners most obvious risk comes from the possibility of losing the thing. To protect the wallet against unauthorized use — for example, if lost — use a PIN code or biometrics: these need to be activated in your wallet. Unlike phones and bank cards, long PINs can be used — up to 50 digits for some models; just remember: the longer – the better. Physical destruction of the wallet also destroys the data stored on it, so its important to have a backup copy of your private keys. A backup is generated when the crypto wallet itself is created: youll see the so-called seed phrase represented by a string of 12 or 24 English words. By entering them in the right order you can re-generate both your public and private keys. Seed phrase generation has been standardized in most blockchain solutions (BIP39 algorithm), so even if, say, a Ledger wallet is lost, you can recover your data to a hardware wallet from another vendor, such as Trezor, or any of the hot software wallets. Its essential not to keep the seed phrase in any readily available digital form, such as a photo on your phone, a text file or the like. Ideally, it should be written down on paper and stashed away in a very safe place like a safe deposit box or a strongbox. Its even more important never to reveal the seed phrase to anybody, because its sole function is that of recovering your lost crypto wallet. Risk number two: phishing and scams A hardware wallet provides no protection whatsoever against social engineering. If the victim voluntarily chooses to make a transfer or reveal their seed phrase to a fake crypto wallet technical support specialist, the money will be gone no matter what hardware protection levels are in place. People are ingenuous when it comes to scams: decoys keep changing all the time. Some shining examples include data breach emails sent to hardware crypto-wallet owners, and fake websites designed as exact replicas of well-known cryptocurrency exchanges or crypto-wallet providers. It takes vigilance — and even paranoid (in the positive sense) mistrustfulness toward everything unexpected — to prevent the worst from happening. Another great source of help is the integrated cybersecurity system for computers and smartphones, which makes the risk of visiting a phishing site almost nil. Risk number three: malware A virus-infected computer or smartphone is a common cause for loss of cryptocurrency investments. If the victim uses an online (hot) wallet, the criminals can steal the private key and perform, all by themselves, any transactions they need to empty the wallet. The trick wont work with a hardware wallet, but other attack vectors can be employed in this case. For example, the moment the victim makes a legitimate transfer, malware can substitute the destination wallets address to redirect the money to the criminals. To pull it off, malware monitors the clipboard and, as soon as a crypto wallet address is copied there, replaces it with the scammers wallet address. The threat can be mitigated to some extent by carefully matching the addresses displayed in the hot wallet or on the cold wallet screen, but depending on the device some other issues may come into play: many hardware wallets have a screen thats too small to adequately read long blockchain addresses. And knowing that the hardware wallets integration with the computer application can also be vulnerable to attacks, even the address displayed on the computer screen can be falsified. The best strategy is to ramp up your computer or smartphone protection to keep malware at bay. Risk number four: fake and modified wallets Buying a hardware wallet is yet another matter to be approached with care: even as they leave the factory, these devices are already in the crosshairs of criminals. There are reports of crypto wallet buyers being sold USB memory sticks with Trojan payloads, fake units with modified firmware, or a free replacement for a defective device under warranty. To avoid such threats, never buy hardware crypto wallets secondhand, from online classified ads, or at online auctions. Always try to order them from the vendors official online stores. When the package arrives, inspect the device for damage (streaks of glue, scratches, signs of tampering) and match it to the description provided on the official website, where they usually list the main authenticity features and give recommendations on how to recognize a fake. Risk number five: physical hacking with memory analysis This is the most exotic — yet not the most unlikely — threat. Many attacks on popular wallet models (one, two, three, four) are based on the fact that by physically breaking the unit apart and connecting its circuitry to special equipment one can manipulate the firmware, read from the memory, or interfere with data transfer among the units components. As a result, it takes minutes to extract the private key or its lightly encrypted version. Protection against this risk of is two-fold. First, pay particular attention to the physical security of your wallet, protect it from theft, and never leave it unattended. Second, you shouldnt disregard extra protection measures, such as a passphrase in Trezor wallets.

 Security Products & Services

Developers using GitHub Actions to build software packages for NPM can now add a command flag that will publish details about the code's origin. This feature is intended to further enhance the security of the open-source software supply chain.

 Threat Actors

"This leak is of more interest to programmers, since it contains the source codes of the following Bing products, Bing Maps and Cortana," the crew wrote on its website, which was screenshotted and shared by Emsisoft threat analyst Brett Callow.

 Trends, Reports, Analysis

Since the content hosted on IPFS is decentralized and distributed, there are challenges in locating and removing malicious content from the ecosystem, making it akin to bullet-proof hosting.

 Malware and Vulnerabilities

Researchers started observing attackers making use of an unorthodox type of backdoor and reinfection method which would go completely undetected if website monitoring doesn’t happen to include the database.

 Trends, Reports, Analysis

Within the largest financial institutions, insurers, and retailers, the rise and adoption of AI, an impending recession, and the return of pre-pandemic fraud techniques are driving record rates of fraud attacks, according to Pindrop.

 Expert Blogs and Opinion

The use of stolen credentials can then be detected when a logging event deviates from the baseline. A similar approach could be applied to detect AWS credentials stolen from other services.

 Expert Blogs and Opinion

Foreseeing every possible twist and turn of a breach may be impossible, but through extensive wargaming, security teams can simulate diverse situations to give them a proactive edge.

 Malware and Vulnerabilities

MalwareHunterTeam discovered a ZIP archive—belonging to the LockBit ransomware group—uploaded to VirusTotal containing previously unknown encryptors for macOS, ARM, FreeBSD, MIPS, and SPARC. Security analysts from BleepingComputer assert that the discovered builds could have been created for testing purposes.

 Identity Theft, Fraud, Scams

With the tax reason around, the frequency of campaigns related to taxes and accounting has increased with threats like Remcos RAT, Emotet, and GuLoader hovering to scam users. The IRS issued an advisory, urging taxpayers to be wary and vigilant of new tax-related scams.

 Threat Actors

MuddyWater has been employing SimpleHelp, a lawful tool used for managing and controlling remote devices, to establish persistence on compromised devices, revealed researchers. The attackers send phishing emails containing links to file storage systems such as OneDrive, Dropbox, or OneHub to download SimpleHelp installers.

 Threat Actors

Government agencies in the U.S. and the U.K. issued a joint advisory to warn organizations about attacks exploiting an old vulnerability in Cisco routers. The attacks are attributed to the Fancy Bear threat group and the flaw in question is CVE-2017-6742. The attackers are exploiting the vulnerability to deploy a custom malware, named Jaguar Tooth.

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Ubuntu Security Notice 6034-1 - It was discovered that Dnsmasq was sending large DNS messages over UDP, possibly causing transmission failures due to IP fragmentation. This update lowers the default maximum size of DNS messages to improve transmission reliability over UDP.

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Red Hat Security Advisory 2023-1888-01 - Red Hat Advanced Cluster Management for Kubernetes 2.7.3 images Red Hat Advanced Cluster Management for Kubernetes provides the capabilities to address common challenges that administrators and site reliability engineers face as they work across a range of public and private   show more ...

cloud environments. Clusters and applications are all visible and managed from a single console—with security policy built in. This advisory contains the container images for Red Hat Advanced Cluster Management for Kubernetes, which fix several bugs. Issues addressed include denial of service and server-side request forgery vulnerabilities.

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Ubuntu Security Notice 6033-1 - It was discovered that the Traffic-Control Index implementation in the Linux kernel did not properly perform filter deactivation in some situations. A local attacker could possibly use this to gain elevated privileges. Please note that with the fix for thisCVE, kernel support for the   show more ...

TCINDEX classifier has been removed. William Zhao discovered that the Traffic Control subsystem in the Linux kernel did not properly handle network packet retransmission in certain situations. A local attacker could use this to cause a denial of service.

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Ubuntu Security Notice 6032-1 - Ziming Zhang discovered that the VMware Virtual GPU DRM driver in the Linux kernel contained an out-of-bounds write vulnerability. A local attacker could use this to cause a denial of service. Gerald Lee discovered that the USB Gadget file system implementation in the Linux kernel   show more ...

contained a race condition, leading to a use-after-free vulnerability in some situations. A local attacker could use this to cause a denial of service or possibly execute arbitrary code.

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Ubuntu Security Notice 6031-1 - It was discovered that the Traffic-Control Index implementation in the Linux kernel contained a use-after-free vulnerability. A local attacker could use this to cause a denial of service or possibly execute arbitrary code. It was discovered that the Integrity Measurement Architecture   show more ...

implementation in the Linux kernel did not properly enforce policy in certain conditions. A privileged attacker could use this to bypass Kernel lockdown restrictions.

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Ubuntu Security Notice 6028-1 - It was discovered that lixml2 incorrectly handled certain XML files. An attacker could possibly use this issue to cause a crash or execute arbitrary code. It was discovered that libxml2 incorrectly handled certain XML files. An attacker could possibly use this issue to cause a crash.

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Ubuntu Security Notice 6030-1 - It was discovered that the Traffic-Control Index implementation in the Linux kernel contained a use-after-free vulnerability. A local attacker could use this to cause a denial of service or possibly execute arbitrary code. It was discovered that the System V IPC implementation in the   show more ...

Linux kernel did not properly handle large shared memory counts. A local attacker could use this to cause a denial of service.

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Ubuntu Security Notice 6029-1 - It was discovered that the Traffic-Control Index implementation in the Linux kernel contained a use-after-free vulnerability. A local attacker could use this to cause a denial of service or possibly execute arbitrary code. It was discovered that the infrared transceiver USB driver did   show more ...

not properly handle USB control messages. A local attacker with physical access could plug in a specially crafted USB device to cause a denial of service.

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Ubuntu Security Notice 6027-1 - It was discovered that the Traffic-Control Index implementation in the Linux kernel contained a use-after-free vulnerability. A local attacker could use this to cause a denial of service or possibly execute arbitrary code. Jiasheng Jiang discovered that the HSA Linux kernel driver for   show more ...

AMD Radeon GPU devices did not properly validate memory allocation in certain situations, leading to a null pointer dereference vulnerability. A local attacker could use this to cause a denial of service.

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Why is Visibility into OT Environments Crucial? The significance of Operational Technology (OT) for businesses is undeniable as the OT sector flourishes alongside the already thriving IT sector. OT includes industrial control systems, manufacturing equipment, and devices that oversee and manage industrial environments and critical infrastructures. In recent years, adversaries have recognized the

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The notorious North Korea-aligned state-sponsored actor known as the Lazarus Group has been attributed to a new campaign aimed at Linux users. The attacks are part of a persistent and long-running activity tracked under the name Operation Dream Job, ESET said in a new report published today. The findings are crucial, not least because it marks the first publicly documented example of the

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Fortra, the company behind Cobalt Strike, shed light on a zero-day remote code execution (RCE) vulnerability in its GoAnywhere MFT tool that has come under active exploitation by ransomware actors to steal sensitive data. The high-severity flaw, tracked as CVE-2023-0669 (CVSS score: 7.2), concerns a case of pre-authenticated command injection that could be abused to achieve code execution. The

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In the short time since their inception, ChatGPT and other generative AI platforms have rightfully gained the reputation of ultimate productivity boosters. However, the very same technology that enables rapid production of high-quality text on demand, can at the same time expose sensitive corporate data. A recent incident, in which Samsung software engineers pasted proprietary code into ChatGPT,

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Telecommunication services providers in Africa are the target of a new campaign orchestrated by a China-linked threat actor at least since November 2022. The intrusions have been pinned on a hacking crew tracked by Symantec as Daggerfly, and which is also tracked by the broader cybersecurity community as Bronze Highland and Evasive Panda. The campaign makes use of "previously unseen plugins from

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Israeli spyware maker NSO Group deployed at least three novel "zero-click" exploits against iPhones in 2022 to infiltrate defenses erected by Apple and deploy Pegasus, according to the latest findings from Citizen Lab. "NSO Group customers widely deployed at least three iOS 15 and iOS 16 zero-click exploit chains against civil society targets around the world," the interdisciplinary laboratory

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A chain of two critical flaws has been disclosed in Alibaba Cloud's ApsaraDB RDS for PostgreSQL and AnalyticDB for PostgreSQL that could be exploited to breach tenant isolation protections and access sensitive data belonging to other customers. "The vulnerabilities potentially allowed unauthorized access to Alibaba Cloud customers' PostgreSQL databases and the ability to perform a supply chain

2023-04
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