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Binance Issues Statement, Denies Involvement in $230,000,000 Hack of Crypto Exchange WazirX

Binance Issues Statement, Denies Involvement in 0,000,000 Hack of Crypto Exchange WazirX

The world’s leading cryptocurrency exchange by trading volume is distancing itself from a cyberattack that recently compromised the WazirX trading platform. In a statement released today, Binance said that it has never owned, controlled, or operated WazirX and that it was not involved in the compromised wallet, contrary to speculation. “The WazirX team and Nischal […]

The post Binance Issues Statement, Denies Involvement in $230,000,000 Hack of Crypto Exchange WazirX appeared first on The Daily Hodl.

FDIC chair, ‘architect of Operation Chokepoint 2.0’ Martin Gruenberg to resign Jan. 19

Binance Helps Btcturk With Hack Investigations — Freezes Over $5.3M in Stolen Funds

Binance Helps Btcturk With Hack Investigations — Freezes Over .3M in Stolen FundsTurkish crypto exchange Btcturk has suffered a cyber attack which caused unauthorized withdrawals from the platform. Crypto exchange Binance is assisting Btcturk with investigating the breach and has already frozen over $5.3M in stolen funds, Binance’s CEO has disclosed. Btcturk has reopened deposits and withdrawals for all ERC20 cryptocurrencies on the ERC20 network. Binance Assisting […]

FDIC chair, ‘architect of Operation Chokepoint 2.0’ Martin Gruenberg to resign Jan. 19

The anatomy of a cyberattack

Explore the inner workings of a cyberattack, and understand its stages and techniques to strengthen cybersecurity defenses.

Cyberattacks have emerged as a serious threat to people, organizations and governments in today’s digitally connected world. A cyberattack is a malicious attempt to exploit vulnerabilities in computer systems, networks or software for nefarious purposes. Understanding the anatomy of a cyberattack is essential for individuals, businesses and governments to develop effective cybersecurity strategies.

To shed light on the changing environment of cyber threats, this article will discuss the essential elements of a cyberattack, and the stages involved in phishing and ransomware attacks.

The stages involved in a cyberattack

Reconnaissance

The attackers gather data on the target during the reconnaissance phase. To find potential vulnerabilities, targets, and important assets, they employ a variety of tactics and engage in active or passive reconnaissance.

Active reconnaissance involves scanning networks for prospective access points, whereas passive reconnaissance in a cyberattack involves gathering information about the target without directly engaging with its systems or networks.

Weaponization

Once the attackers have located their targets and weak points, they weaponize the attack by writing malicious code or taking advantage of already-known weaknesses. This frequently entails developing malware that can harm or gain illegal access to the target system, such as viruses, trojans, or ransomware.

Related: Top 7 cybersecurity jobs in high demand

Delivery

The malicious payload must now be delivered to the target. Attackers employ a variety of techniques to infect unsuspecting victims with malware, including phishing emails, harmful links, infected attachments and watering hole assaults.

Exploitation

During this phase, attackers use the flaws in the target network or system to obtain unauthorized access. They use security flaws, unpatched software or shoddy authentication procedures to access the target.

Installation

Once the attackers have access to the target system, they install the virus to keep it persistent and under their control. They can also increase their credentials to get more advanced and lateral network access.

Command and control

Attackers create a command and control infrastructure to keep in touch with the compromised systems. This is known as command and control (C2). This enables them to communicate, exfiltrate information and covertly carry out their nefarious actions.

Actions on objective

After seizing control of the target system, attackers move on to completing their primary goals. This might entail data theft, data alteration, requests for ransom or the launch of additional assaults against different targets.

Covering tracks

To prevent detection and keep their foothold, attackers hide their existence in the compromised systems by deleting logs, wiping out evidence of their activity and disguising their presence in the logs.

Understanding the anatomy of a phishing attack

A phishing attack is a type of cyberattack in which attackers use social engineering techniques to deceive individuals or organizations into divulging sensitive information, such as login credentials, financial details, or personal data.

For instance, an attacker can remotely control an infected computer by installing remote access trojans (RATs). After deploying the RAT on a compromised system, the attacker can send commands to the RAT and retrieve data in response.

The attackers often impersonate trusted entities, such as banks, online services or colleagues, to gain the victim’s trust and manipulate them into taking specific actions that compromise their security. The stages involved in a phishing attack include:

  • Reconnaissance: Attackers research and identify potential targets — often through social engineering or web scraping — to collect email addresses and personal information.
  • Weaponization: Cybercriminals craft deceptive emails containing malicious links or attachments designed to look legitimate, enticing victims into clicking or downloading them.
  • Delivery: Phishing emails are sent to the targeted individuals or organizations, tricking them into opening malicious links or attachments.
  • Exploitation: When victims click on malicious links or open infected attachments, the attackers gain unauthorized access to their systems or harvest sensitive information.
  • Installation: The attackers may install malware on the victim’s device, such as keyloggers or spyware, to steal credentials and monitor activities.
  • C2: The attackers maintain communication with the compromised systems, enabling them to control the malware remotely.
  • Actions on objective: Cybercriminals may use stolen credentials for financial fraud, gain unauthorized access to sensitive data, or even launch further attacks against other targets.
  • Covering tracks: After achieving their objectives, attackers may attempt to erase evidence of the phishing attack to avoid detection.

Related: Top 7 Wall Street movies you must watch

Understanding the anatomy of a ransomware attack

A ransomware attack is a type of cyberattack in which malicious software, known as ransomware, is deployed to encrypt a victim’s data or lock them out of their computer systems or files. The attackers demand a ransom payment from the victim to provide the decryption key or restore access to the encrypted data.

  • Reconnaissance: Attackers identify potential victims based on their vulnerabilities, often through automated scans of open ports and exposed services.
  • Weaponization: Cybercriminals package ransomware into malicious software that encrypts the victim’s data and demand a ransom for its release.
  • Delivery: The ransomware is delivered via various methods, such as infected email attachments or malicious websites.
  • Exploitation: Once the victim’s system is infected, the ransomware exploits software vulnerabilities to encrypt the files and render them inaccessible.
  • Installation: The ransomware gains persistence on the victim’s system, making it difficult to remove without the decryption key.
  • C2: Ransomware communicates with the attacker’s server to provide the decryption key after the ransom is paid.
  • Actions on objective: The objective is to extort the victim by demanding a ransom payment in exchange for the decryption key to recover the encrypted data.
  • Covering tracks: Ransomware attackers often cover their tracks by using encryption and anonymizing technologies to avoid detection.

Understanding the anatomy of a cyberattack is crucial to developing effective cybersecurity measures. By recognizing the stages involved in a cyberattack, individuals and organizations can proactively implement security controls, educate users about potential threats, and employ best practices to defend against the ever-evolving landscape of cyber threats. Cybersecurity is a collective responsibility, and with vigilance and proactive measures, one can mitigate the risks posed by cybercriminals.

FDIC chair, ‘architect of Operation Chokepoint 2.0’ Martin Gruenberg to resign Jan. 19

FTX Debtors Report $8.9B Shortfall in Customer Funds and ‘Highly Commingled’ Assets in Latest Presentation

FTX Debtors Report .9B Shortfall in Customer Funds and ‘Highly Commingled’ Assets in Latest PresentationOn March 2, 2023, FTX debtors released their second stakeholder presentation, which contains a preliminary analysis of the now-defunct cryptocurrency exchange’s shortfalls. The latest presentation reveals a significant shortfall, as approximately $2.2 billion of the company’s total assets were found in FTX-related addresses, but only $694 million is considered “Category A Assets,” or liquid cryptocurrencies […]

FDIC chair, ‘architect of Operation Chokepoint 2.0’ Martin Gruenberg to resign Jan. 19

‘Nobody is holding them back’ — North Korean cyber-attack threat rises

"Even though the tradecraft is not perfect right now… it's still a fresh market for North Korea," says former CIA analyst Soo Kim.

North Korea-backed cyberattacks on crypto and tech firms will only become more sophisticated over time as the country battles prolonged economic sanctions and resource shortages. 

Former CIA analyst Soo Kim told CNN on July 10 that the process of generating overseas crypto income for the regime has now become a “way of life” for the North Koreans.

"In light of the challenges that the regime is facing — food shortages, fewer countries willing to engage with North Korea [...] this is just going to be something that they will continue to use because nobody is holding them back, essentially."

She also added that it is likely that their crypto attacking “tradecraft” will only improve from here on.

"Even though the tradecraft is not perfect right now, in terms of their ways of approaching foreigners and preying upon their vulnerabilities, it's still a fresh market for North Korea," said Kim.

The RAND Corporation policy analyst made the comments almost two months after the release of a joint advisory from the United States government about the infiltration of North Korean operatives across freelance tech jobs — posing risks of intellectual property, data, and funds theft that could be used to violate sanctions.

Former FBI intelligence analyst Nick Carlsen told CNN that DPRK operatives embedded in these firms would not only earn income used to skirt sanctions but they could also potentially identify vulnerabilities in certain client systems that their hacker comrades could take advantage of.

"Any vulnerability they might identify in a client's systems would be at grave risk,” explained Carlsen.

Related: Crypto market crash wipes out millions from North Korea's stolen crypto funds

In a lengthy Twitter expose about North Korean hackers, The Defi Edge noted that these crypto attacks typically target bridges, focus on companies based in Asia, and often begin by targeting unsuspecting employees.

The country has been identified as being allegedly behind some of the largest cyberattacks in recent crypto history, including the $620 million hack of Axie Infinity and the $100 million hack of the Harmony protocol.

A report from Coinclub on June 29 estimated there are as many as 7,000 full-time hackers in North Korea working to raise funds through cyberattacks, ransomware, and crypto-protocol hacks.

FDIC chair, ‘architect of Operation Chokepoint 2.0’ Martin Gruenberg to resign Jan. 19

North Korean hackers stole $400M in 2021, mostly ETH: Chainalysis

Hackers from North Korea have nearly doubled their thefts since 2019 by amassing $400 million in crypto via cyber attack in 2021.

North Korean crypto hackers siphoned off nearly $400 million in crypto through cyber attacks in 2021 according to new data from Chainalysis.

The type of crypto stolen has also seen a sea change according to the Jan. 13 report from the blockchain analytics firm. In 2017, BTC accounted for nearly all the crypto stolen by the DPRK, but it now accounts for just one fifth:

“In 2021, only 20% of the stolen funds were Bitcoin, whereas 22% were either ERC-20 tokens or altcoins. And for the first time ever, Ether accounted for a majority of the funds stolen at 58%.”

The report stated that attacks in 2021 from North Korea (DPRK) primarily targeted “investment firms and centralized exchanges, and made use of phishing lures, code exploits, malware, and advanced social engineering” to maliciously acquire the funds.

Stolen cryptocurrency is believed to be used by the DPRK to evade economic sanctions and to help fund nuclear weapons and ballistic missile programs, according to a UN Security Council report.

The threat that the DPRK presents to global crypto platforms has become ever-present. Chainalysis now refers to hackers from the Hermit Kingdom, such as Lazarus Group, as advanced persistent threats (APT). These threats have been on the increase over the past three years, following the all-time high of over $500 million in crypto stolen in 2018.

Chainalysis reported that the funds were meticulously laundered. Methods range from chain hopping, the ‘Peel Chain’ method, and more recently the hackers have employed a complicated system of coin swaps and mixing.

Related: LCX loses $6.8M in a hot wallet compromise over Ethereum blockchain

Mixers were used on over 65% of the funds stolen in 2021, which is a 3-fold increase since 2019. A mixer is a software-based privacy system that allows users to hide the source and destination of the coins they send. Decentralized exchanges (DEX) are increasingly preferred by hackers since they are permissionless and have ample liquidity for coins to be swapped at the user’s will.

Chainalysis used the Aug. 19, 2021 hack at Liquid.com in which $91 million in crypto was stolen as an example of the typical way in which DPRK hackers launder funds. They first swapped ERC-20 coins for Ether (ETH) at decentralized exchanges. Then the ETH was sent to a mixer and swapped for Bitcoin (BTC), which was also mixed. Finally, BTC was sent from the mixer to centralized Asian exchanges as a likely fiat off-ramp.

FDIC chair, ‘architect of Operation Chokepoint 2.0’ Martin Gruenberg to resign Jan. 19

Chinese Crypto Exchange Paralyzed After Suffering Serious Cyber Attack

Hotbit is temporarily shutting down following a cyber attack that paralyzed a number of its central services.  In a statement, the Chinese crypto exchange reveals that it suffered a security breach at about 8 PM UTC (1 PM PST) on Friday. The hackers also attempted to hack into Hotbit’s wallets, but the attack was identified […]

The post Chinese Crypto Exchange Paralyzed After Suffering Serious Cyber Attack appeared first on The Daily Hodl.

FDIC chair, ‘architect of Operation Chokepoint 2.0’ Martin Gruenberg to resign Jan. 19