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Showing posts with label Crypto Fraud. Show all posts
Cyber Fraud
Chainlink Crypto Crime Crypto Fraud Crypto Hack Cyber Fraud

"Pink Drainer" Siphons $4.4 Million Chainlink Through Phishing

 

Pink Drainer, the infamous crypto-hacking outfit, has been accused in a highly sophisticated phishing scheme that resulted in the theft of $4.4 million in Chainlink (LINK) tokens. 

This recent cyber crime targeted a single victim who was duped into signing a transaction linked with the 'Increase Approval' feature. 

Pink Drainer exploits 'Increase Approval' function 

The 'Increase Approval' function is a regular method in the cryptocurrency world, allowing users to limit the number of tokens that can be transferred by another wallet. This activity facilitated the illegal transfer of 275,700 LINK tokens in two separate transactions without the victim's knowledge. 

According to Scam Sniffer, a crypto-security website, the tokens were drained in two separate transfers. Initially, 68,925 LINK tokens were routed to a wallet identified by Etherscan as "PinkDrainer: Wallet 2." The remaining 206,775 LINK were sent to a separate address that ended as "E70e." 

ZachXBT, a well-known crypto detective, also revealed that the stolen funds were soon transferred into Ethereum (ETH) and laundered through the eXch service, complicating asset tracking.

Scam Sniffer's investigation verifies the Pink Drainer group's involvement in this theft, although the specific technique employed to trick the victim into allowing the token transfer is unclear.

Scam Sniffer has also discovered at least ten additional scam sites linked to Pink Drainer in the previous 24 hours.

The Pink Drainer syndicate has been linked to incidents involving Evomos, Pika Protocol, and Orbiter Finance. It is also known for high-profile attacks on platforms such as Twitter and Discord. They were also accused earlier this year in a fraud posing as crypto journalists, which resulted in the theft of nearly $3 million from over 1,932 victims. 

According to Dune Analytics' most recent statistics, Pink Drainer's operations have intensified. As of December 19, the total losses suffered by the group amounted to $18.7 million, impacting 9,068 victims.
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Social Media
Crypto Fraud Cyber Fraud FTM Fraud Illicit Activity Online Scam Social Media

Twitter Becomes the Epicentre of FTM Fraud

 

Online settings, such as Twitter, are becoming increasingly perilous, rife with fraudulent schemes aimed at naïve victims. Social media giant has recently been the epicentre of deception, with fraudsters deploying innovative ways to abuse its massive user base.

One such worrisome tendency is the widespread use of a scam involving the illicit distribution of Fantom (FTM) tokens, a situation that casts a sharp light on the rising issue of illegal activities inside the cryptocurrency arena. 

Modus operandi

Following a devastating hack of Multichain, a decentralised banking protocol, cybercriminals recently switched their attention to the Fantom network. These perpetrators created a deceptive story that gathered traction on Twitter by taking advantage of the confusion that resulted. 

They made false claims that the Fantom Foundation, a nonprofit organisation responsible for managing the Fantom network, was issuing FTM tokens to all users in reaction to the Multichain attack. This deceptive post was then rapidly circulated, its promise of free tokens luring a sizable number of Twitter users. 

A phishing link that was included in the tweet and was meant to trick recipients into thinking it was coming from the Fantom Foundation added credibility to the scam. This manipulative method, intended to take advantage of the reliability linked to well-known companies, is a typical tactic in the cybercriminal playbook. 

The chaotic events started on July 6 when anomalous behaviour on the Multichain platform was discovered. In response, Multichain shut down all activities and started an inquiry into the mysterious disappearance of assets valued at over $125 million. 

The Fantom bridge, which lost an estimated $122 million in multiple cryptocurrencies, including Wrapped Bitcoin (WBTC), USD Coin, Tether, and a number of altcoins, was the main victim of this crime. 

The initial response from Multichain was to warn users to stop using the protocol and to withdraw any contract approvals related to their platform. It was advised to take this cautious approach up till a more comprehensive picture of the circumstances was achieved. 

Worrying trend 

This exploit is part of an alarming pattern in the bitcoin business where Twitter is being utilised as a haven for scams, and it is not a unique event. 

During the Multichain hack saga, prominent industry figure Changpeng "CZ" Zhao, CEO of Binance, entered the battle and assured his Twitter followers that the Binance platform had not been impacted and that all money was safe.

But in a world full of lies, not all voices of comfort can be relied upon. The Fantom scam serves as yet another sombre reminder of the necessity for caution when interacting with the cryptocurrency market online, especially on public social media sites like Twitter. 

It's imperative to exercise caution when clicking on unknown links and offers that seem unreal. As we move forward, cybersecurity is not just about protection but also about judgement and attentiveness, realising that not everything on Twitter is digital gold.
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Ransomware Actors
Crypto Fraud Crypto Mining Cyber Crime Illegal Funds Money Laundering Ransomware Actors

Ransomware Actors are Using Crypto Mining Pools to Launder Money

 

According to a recent analysis by the blockchain forensic company Chainalysis, the use of cryptocurrency mining as a technique to improve money laundering skills extends beyond nation state actors and has particular appeal to regular criminals. 

As per reports, sanctioned nation-states like Iran have turned to cryptocurrency mining as a way to amass money away from the traditional banking system. In a recent development, cybersecurity firm Mandiant also disclosed how the Lazarus Group, a notorious North Korean hacker group, has been utilising stolen cryptocurrencies like Bitcoin to buy freshly-mined cryptocurrency through hashing rental and cloud mining services.

Simply explained, online criminals mine "clean" coins using stolen crypto and then utilise different businesses to launder them. One of these sites, according to Chainalysis, is an unnamed "mainstream exchange" that has been acknowledged as having received "substantial funds" from wallets and mining pools connected to ransomware activity. 

In total, $94.2 million was sent to one of these recognised deposit addresses, of which $19.1 million came from ransomware addresses and the remaining $14.1 million from mining pools. However, Chainalysis found that the ransomware wallet in question was occasionally sending money to a mining pool "both directly and via intermediaries." 

“This may represent a sophisticated attempt at money laundering, in which the ransomware actor funnels funds to its preferred exchange via the mining pool in order to avoid triggering compliance alarms at the exchange,” the report reads. 

Chainalysis further asserts that "ransomware actors may be increasingly abusing mining pools"; citing its data, the company stated that "since the start of 2018, we've seen a large, steady increase in value sent from ransomware wallets to mining pools." 

A total of 372 exchange deposit addresses have received cryptocurrency transfers totaling at least $1 million from mining pools and ransomware addresses. Instances like these, in the opinion of the company, point to ransomware criminals trying to pass off their stolen money as earnings from cryptocurrency mining. 

Chainalysis said that "this sum is certainly an underestimate," adding that "these exchange deposit addresses have received a total of $158.3 million from ransomware addresses since the beginning of 2018. 

Illegal money transfers 

Chainalysis cites BitClub as an additional noteworthy instance of cybercriminals using mining pools. BitClub was a notorious cryptocurrency Ponzi scheme that deceived thousands of investors between 2014 and 2019 by making claims that its Bitcoin mining operations would generate significant returns. 

The company claims that BitClub Network transmitted Bitcoin valued at millions of dollars to wallets connected to "underground money laundering services" allegedly based in Russia. These money laundering wallets then transferred Bitcoin to deposit addresses at two well-known exchanges over the course of three years. 

The same period, between October 2021 and August 2022, saw the transfer of millions of dollars' worth of Bitcoin to the identical deposit addresses at both exchanges by an unidentified Russian Bitcoin mining company. 

The cryptocurrency exchange BTC-e, which the U.S. authorities accuse of promoting money laundering and running an illegal money service business, sent money to one of the wallets allegedly linked to the alleged money launderers. Additionally, it has been claimed that BTC-e handled money that was stolen from Mt. Gox, the biggest Bitcoin exchange in the early 2010s. 

These accusations led to the seizure of BTC-e by American authorities in July 2017, the removal of its website, and the arrest of its founder, Alexander Vinnik, in Greece the same month. 

Prevention Tips

According to Chainalysis, mining pools and hashing providers should put strict wallet screening procedures in place, including Know Your Customer (KYC) protocols, in order to "ensure that mining, which is a core functionality of Bitcoin and many other blockchains, isn't compromised."

The company also believes that these verification processes can successfully stop criminals from using mining as a means of money laundering by using blockchain analysis and other tools to confirm the source of funds and rejecting cryptocurrency coming from shady addresses.
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