Cryptocurrency and Blockchain security due diligence: A guide to hedge risk

Blockchain technology has experienced remarkable adoption in recent years, driven by its use across a broad spectrum of institutions, governments, retail investors, and users. However, this surge in… Read more on Cisco Blogs

Binance’s Top Crypto Crime Investigator Is Being Detained in Nigeria

Tigran Gambaryan, a former crypto-focused US federal agent, and a second Binance executive, Nadeem Anjarwalla, have been held in Abuja without passports for two weeks.

The Mystery of the $400 Million FTX Heist May Have Been Solved

An indictment against three Americans suggests that at least some of the culprits behind the theft of an FTX crypto fortune may be in custody.

29-Year-Old Ukrainian Cryptojacking Kingpin Arrested for Exploiting Cloud Services

A 29-year-old Ukrainian national has been arrested in connection with running a “sophisticated cryptojacking scheme,” netting them over $2 million (€1.8 million) in illicit profits. The person, described as the “mastermind” behind the operation, was apprehended in Mykolaiv, Ukraine, on January 9 by the National Police of Ukraine with support from Europol and an unnamed cloud service provider

Child Abusers Are Getting Better at Using Crypto to Cover Their Tracks

Crypto tracing firm Chainalysis found that sellers of child sexual abuse materials are successfully using “mixers” and “privacy coins” like Monero to launder their profits and evade law enforcement.

Lawmakers Are Out for Blood After a Hack of the SEC’s X Account Causes Bitcoin Chaos

The US Securities and Exchange Commission is under pressure to explain itself after its X account was compromised, leading to wild swings in the bitcoin market.

Beware: Scam-as-a-Service Aiding Cybercriminals in Crypto Wallet-Draining Attacks

Cybersecurity researchers are warning about an increase in phishing attacks that are capable of draining cryptocurrency wallets. "These threats are unique in their approach, targeting a wide range of blockchain networks, from Ethereum and Binance Smart Chain to Polygon, Avalanche, and almost 20 other networks by using a crypto wallet-draining technique," Check Point researchers Oded Vanunu,

Crypto Hardware Wallet Ledger's Supply Chain Breach Results in $600,000 Theft

Crypto hardware wallet maker Ledger published a new version of its "@ledgerhq/connect-kit" npm module after unidentified threat actors pushed malicious code that led to the theft of more than $600,000 in virtual assets. The compromise was the result of a former employee falling victim to a phishing attack, the company said in a statement. This allowed the attackers to gain

New NKAbuse Malware Exploits NKN Blockchain Tech for DDoS Attacks

A novel multi-platform threat called NKAbuse has been discovered using a decentralized, peer-to-peer network connectivity protocol known as NKN (short for New Kind of Network) as a communications channel. "The malware utilizes NKN technology for data exchange between peers, functioning as a potent implant, and equipped with both flooder and backdoor capabilities," Russian

N. Korea's Kimsuky Targeting South Korean Research Institutes with Backdoor Attacks

The North Korean threat actor known as Kimsuky has been observed targeting research institutes in South Korea as part of a spear-phishing campaign with the ultimate goal of distributing backdoors on compromised systems. "The threat actor ultimately uses a backdoor to steal information and execute commands," the AhnLab Security Emergency Response Center (ASEC) said in an

The Binance Crackdown Will Be an 'Unprecedented' Bonanza for Crypto Surveillance

Binance’s settlement requires it to offer years of transaction data to US regulators and cops, exposing the company—and its customers—to a “24/7, 365-days-a-year financial colonoscopy.”

U.S. Treasury Sanctions Sinbad Cryptocurrency Mixer Used by North Korean Hackers

The U.S. Treasury Department on Wednesday imposed sanctions against Sinbad, a virtual currency mixer that has been put to use by the North Korea-linked Lazarus Group to launder ill-gotten proceeds. "Sinbad has processed millions of dollars' worth of virtual currency from Lazarus Group heists, including the Horizon Bridge and Axie Infinity heists," the department said. "Sinbad is

N. Korean Hackers 'Mixing' macOS Malware Tactics to Evade Detection

The North Korean threat actors behind macOS malware strains such as RustBucket and KANDYKORN have been observed "mixing and matching" different elements of the two disparate attack chains, leveraging RustBucket droppers to deliver KANDYKORN. The findings come from cybersecurity firm SentinelOne, which also tied a third macOS-specific malware called ObjCShellz to the RustBucket campaign

DOJ Charges Binance With Vast Money-Laundering Scheme and Sanctions Violations

From Russia to Iran, the feds have charged Binance with conducting well over $1 billion in transactions with sanctioned countries and criminal actors.

Randstorm Exploit: Bitcoin Wallets Created b/w 2011-2015 Vulnerable to Hacking

Bitcoin wallets created between 2011 and 2015 are susceptible to a new kind of exploit called Randstorm that makes it possible to recover passwords and gain unauthorized access to a multitude of wallets spanning several blockchain platforms. "Randstorm() is a term we coined to describe a collection of bugs, design decisions, and API changes that, when brought in contact with each other, combine

They Cracked the Code to a Locked USB Drive Worth $235 Million in Bitcoin. Then It Got Weird

Stefan Thomas lost the password to an encrypted USB drive holding 7,002 bitcoins. One team of hackers believes they can unlock it—if they can get Thomas to let them.

Citing Hamas, the US Wants to Treat Crypto "Mixers" as Suspected Money Launderers

With a new emphasis on the Hamas attacks on Israel, the US Treasury has proposed designating foreign cryptocurrency “mixer” services as money launderers and national security threats.

Binance's Smart Chain Exploited in New 'EtherHiding' Malware Campaign

Threat actors have been observed serving malicious code by utilizing Binance's Smart Chain (BSC) contracts in what has been described as the "next level of bulletproof hosting." The campaign, detected two months ago, has been codenamed EtherHiding by Guardio Labs. The novel twist marks the latest iteration in an ongoing malware campaign that leverages compromised WordPress sites to serve

New Clues Suggest Stolen FTX Funds Went to Russia-Linked Money Launderers

Whoever looted FTX on the day of its bankruptcy has now moved the stolen money through a long string of intermediaries—and eventually some that look Russian in origin.

Inside FTX’s All-Night Race to Stop a $1 Billion Crypto Heist

The same chaotic day FTX declared bankruptcy, someone began stealing hundreds of millions of dollars from its coffers. A WIRED investigation reveals the company’s “very crazy night” trying to stop them.

Ransomware Extortion Skyrockets in 2023, Reaching $449.1 Million and Counting

Ransomware has emerged as the only cryptocurrency-based crime to grow in 2023, with cybercriminals extorting nearly $175.8 million more than they did a year ago, according to findings from Chainalysis. "Ransomware attackers are on pace for their second-biggest year ever, having extorted at least $449.1 million through June," the blockchain analytics firm said in a midyear crypto crime report

North Korea Is Now Mining Crypto to Launder Its Stolen Loot

A spy group working for the Kim regime has been feeding stolen coins into crypto mining services in an effort to throw tracers off their trail.

Crypto Was Afraid to Show Its Face at SXSW 2023

Any mention of crypto was deliberately veiled at this year’s festival. And that strategy might catch on.

Authorities Shut Down ChipMixer Platform Tied to Crypto Laundering Scheme

A coalition of law enforcement agencies across Europe and the U.S. announced the takedown of ChipMixer, an unlicensed cryptocurrency mixer that began its operations in August 2017. "The ChipMixer software blocked the blockchain trail of the funds, making it attractive for cybercriminals looking to launder illegal proceeds from criminal activities such as drug trafficking, weapons trafficking,

Crypto Buyers Beware: 1 in 4 New Tokens of Any Value Is a Scam

And according to tracing firm Chainalysis, one very prolific scammer ran at least 264 of those scams in 2022 alone.

Most Criminal Cryptocurrency Funnels Through Just 5 Exchanges

The crypto money-laundering market is tighter than at any time in the past decade, and the few big players are moving a “shocking” amount of currency.

BitKeep Confirms Cyber Attack, Loses Over $9 Million in Digital Currencies

Decentralized multi-chain crypto wallet BitKeep on Wednesday confirmed a cyber attack that allowed threat actors to distribute fraudulent versions of its Android app with the goal of stealing users' digital currencies. "With maliciously implanted code, the altered APK led to the leak of user's private keys and enabled the hacker to move funds," BitKeep CEO Kevin Como said, describing it as a "

I Lost $17,000 in Crypto. Here’s How to Avoid My Mistake

I’m not the first person to suffer this fate, but hopefully I can be the last.

Google Wins Lawsuit Against Russians Linked to Blockchain-based Glupteba Botnet

Google has won a lawsuit filed against two Russian nationals in connection with the operation of a botnet called Glupteba, the company said last week. The U.S. District Court for the Southern District of New York imposed monetary sanctions against the defendants and their U.S.-based legal counsel. The defendants have also been asked to pay Google's attorney fees. The defendants' move to press

The Hunt for the FTX Thieves Has Begun

Mysterious crooks took hundreds of millions of dollars from FTX just as it collapsed. Crypto-tracing blockchain analysis may provide an answer.

Critical Flaw Reported in Move Virtual Machine Powering the Aptos Blockchain Network

Researchers have disclosed details about a now-patched critical flaw in the Move virtual machine that powers the Aptos blockchain network. The vulnerability "can cause Aptos nodes to crash and cause denial of service," Singapore-based Numen Cyber Labs said in a technical write-up published earlier this month. Aptos is a new entrant to the blockchain space, which launched its mainnet on October

Hackers Used Fake Job Offer to Hack and Steal $540 Million from Axie Infinity

The $540 million hack of Axie Infinity's Ronin Bridge in late March 2022 was the consequence of one of its former employees getting tricked by a fraudulent job offer on LinkedIn, it has emerged.  According to a report from The Block published last week citing two people familiar with the matter, a senior engineer at the company was duped into applying for a job at a non-existent company, causing

North Korean Hackers Suspected to be Behind $100M Horizon Bridge Hack

The notorious North Korea-backed hacking collective Lazarus Group is suspected to be behind the recent $100 million altcoin theft from Harmony Horizon Bridge, citing similarities to the Ronin bridge attack in March 2022. The finding comes as Harmony confirmed that its Horizon Bridge, a platform that allows users to move cryptocurrency across different blockchains, had been breached last week.

US Courts Are Coming After Crypto Exchanges That Skirt Sanctions

A newly unsealed opinion is likely the first decision from a US federal court to find that cryptocurrencies can't be used to evade sanctions.

Beanstalk cryptocurrency heist: scammer votes himself all the money

Voting safeguards based on commuity collateral don't work if one person can use a momentary loan to "become" 75% of the community.

Wormhole cryptotrading company turns over $340,000,000 to criminals

It was the best of blockchains, it was the worst of blockchains... as Charles Dickens might have said.

Do the Benefits of Bitcoin Outweigh the Risks?

What do Burger King and the popular “Doge” meme have in common? They both have cryptocurrencies named after their likeliness. WhopperCoin and Dogecoin are just two examples of the thousands of types of cryptocurrencies that have caught users’ attention over the past few years. Cryptocurrencies are digital tokens generated by a computer after solving complex mathematical functions. These functions are used to verify the authenticity of a ledger, or blockchain.  

Bitcoin is the most popular cryptocurrency today, increasing its value by almost 300% in 2020. Today, almost 46 million Americans own at least one share of Bitcoin, illustrating how these cryptocurrencies are the future of tomorrow’s digital payment system — or are they? The same benefits that make them a popular choice with online users have also made them popular amongst online thieves, sparking a wave of ransomware attacks and other cyberattacks more recently. This begs the question: do the benefits of Bitcoin outweigh the risks? 

Bitcoin: Benefits vs. Risks 

Every rose has its thorn, and several Bitcoin benefits seem to be hitched to online security risks. Here are some cryptocurrency characteristics that may seem appealing to users, but also provide cybercriminals with an opportunity to exploit:  

Purchase discretion and user autonomy 

As previously mentioned, cryptocurrency exchanges take place on an online public ledger, or blockchain, to secure online transactions. This means that anybody can observe the exchange online. However, the parties making the transactions are anonymous, disguised with a random number. Bitcoin users can make purchases that are never associated with their identity, similar to a cash transaction.  

While the purchase discretion provided by Bitcoin may be appealing to users who want to remain private, this characteristic could also aid cybercriminals in malicious activity. Due to the anonymity of Bitcoin transactions, there is no way for someone to associate a person with a certain cryptocurrency wallet. Furthermore, a user could have multiple wallets, allowing them to spread their currency from one address to another.  

For a cybercriminal looking to target an individual with ransomware, the purchase discretion and anonymity of Bitcoin provide a favorable solution. In fact, Bitcoin accounts for approximately 98% of ransomware payments today. Say a hacker carries out a ransomware attack and demands that the user pay a large sum in Bitcoin. If the user completes the payment, the hacker can keep moving the currency from one anonymous account to another. That makes it very difficult — though not impossible — to trace if the individual decides to investigate the case and tries to get their money back. 

No more middleman  

Another characteristic that Bitcoin users find appealing is the autonomy offered by digital currencies. In theory, they allow users more autonomy over their own money than government-regulated currencies do. With Bitcoin, users can control how they spend their money without dealing with an intermediary authority like a bank or government. 

This lack of intermediary authority also opens a door for hackers to exploit. Say a user decides that they want to manage their finances using Bitcoin to bypass banking fees and send money to friends and family in different parts of the world. As previously mentioned, a Bitcoin user is assigned an anonymous private key that acts as their security credential. This key is generated and maintained by the user instead of a third-party agency. But what happens if the key isn’t random enough? An attacker could steal the user’s private key, and they will not be able to recover it since the Bitcoin blockchain is not dependent on any centralized third-party institutions. Therefore, it will be very difficult to track the attacker’s behaviors and recover lost funds.  

How Consumers Can Protect Themselves from Cryptocurrency-Driven Attacks 

It is safe to say that Bitcoin has caused a lot of buzz. But do the benefits outweigh the risks? Due to the nature of Bitcoin and most other public blockchains, anyone in the world can perform transactions or cryptographic computations — including cybercriminals. That’s why it is crucial for current cryptocurrency users and those considering cryptocurrency investment to do their research and know what vulnerabilities lie within the world of Bitcoin.  

Follow these tips to help protect yourself from common threats that leverage cryptocurrency:  

 1. Do your homework.  

With blockchain, cryptocurrency, and any new and emerging technology, make sure you always remain a bit skeptical. Do your homework before you embrace the technology — research your options and make note of any known security issues and what you can do to mitigate known risks.  

 2. Don’t pay the ransom.  

If a hacker does target you with ransomware demanding Bitcoin payment, it’s best not to pay the ransom. Although you may feel in the moment that this is the only way to get your encrypted files back, there is no guarantee that the ransomware developers will send a decryption tool once they receive the payment. Paying the ransom also contributes to the development of more ransomware families, so it is best to hold off on making any payments. Furthermore, a recent study found that 80% of businesses that choose to pay a ransom experience a subsequent ransomware attack. While it may feel like your only option in the moment, paying a ransom could show attackers that you’re willing to make the payment, therefore positioning you as an ideal target for yet another attack.   

3. Back up your data.  

If you are targeted with ransomware, it’s crucial that you always have backup copies of your files, preferably in the cloud and on an external hard drive. This way, if you do get a ransomware infection, you can wipe your computer or device and reinstall your files from the backup. Backups protect your data, and you won’t be tempted to reward the hackers by paying a ransom. Backups won’t prevent ransomware, but they can mitigate the risks.  

4. Update your credentials.  

Large organizations often fall prey to ransomware attacks, so take necessary precautions if a company you’ve interacted with becomes compromised from a data leak or a ransomware attack. Immediately change your passwords for all your accounts, ensuring they are strong and unique. You can also employ a password manager to keep track of your credentials and generate secure login keys.  

5. Use a comprehensive security solution 

Add an extra layer of security with a solution such as McAfee® Total Protection, which includes Ransom Guard, to help protect your devices from these cyberthreats and ensure your digital wellness online.  

The emergence of Bitcoin has indeed facilitated a wave of cybercrime that was previously difficult to perceive. In this new age of digital payments, blockchain, and cryptocurrencies, make sure that you do your research and stay vigilant when it comes to protecting your online safety. Remember: Bitcoin worth will continue to fluctuate, but your personal security will always remain invaluable.  

Stay Updated

To stay updated on all things McAfee and on top of the latest consumer and mobile security threats, follow @McAfee_Home on Twitter, subscribe to our newsletter, listen to our podcast Hackable?, and ‘Like’ us on Facebook.  

The post Do the Benefits of Bitcoin Outweigh the Risks? appeared first on McAfee Blogs.

Public-Key Cryptography in Blockchain

How public-key cryptography works Public-key or asymmetric cryptography is one of the two main types of encryption algorithms. Its names come from the fact that it uses two different encryption keys: a public one and a private one. Public and private keys The private key used in public-key cryptography is a random number with certain […]

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Public-Key Cryptography in Blockchain was first posted on September 29, 2020 at 12:25 pm.
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Hash Functions in Blockchain

Introduction to hash functions Hash functions are one of the most extensively-used cryptographic algorithms in blockchain technology. They are cryptographic (but not encryption) algorithms that are designed to protect data integrity. In a nutshell, a hash algorithm is a mathematical function that transforms any input into a fixed size output. To be cryptographically secure — […]

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Hash Functions in Blockchain was first posted on September 29, 2020 at 11:16 am.
©2017 "InfoSec Resources". Use of this feed is for personal non-commercial use only. If you are not reading this article in your feed reader, then the site is guilty of copyright infringement. Please contact me at darren.dalasta@infosecinstitute.com