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Deepfakes Explained: How They Operate and How to Safeguard Yourself

 

In May of this year, an anonymous person called and texted elected lawmakers and business executives pretending to be a senior White House official. U.S. senators were among the recipients who believed they were speaking with White House chief of staff Susie Wiles. In reality, though, it was a phoney. 

The scammer employed AI-generated deepfake software to replicate Wiles' voice. This easily accessible, low-cost software modifies a public speech clip to deceive the target. 

Why are deepfakes so convincing? 

Deepfakes are alarming because of how authentic they appear. AI models can analyse public photographs or recordings of a person (for example, from social media or YouTube) and then create a fake that mimics their face or tone very accurately. As a result, many people overestimate their ability to detect fakes. In an iProov poll, 43% of respondents stated they couldn't tell the difference between a real video and a deepfake, and nearly one-third had no idea what a deepfake was, highlighting a vast pool of potential victims.

Deepfakes rely on trust: the victim recognises a familiar face or voice, and alarms do not sound. These scams also rely on haste and secrecy (for example, 'I need this wire transfer now—do not tell anyone'). When we combine emotional manipulation with visual/auditory reality, it is no surprise that even professionals have been duped. The employee in the $25 million case saw something odd—the call stopped abruptly, and he never communicated directly with colleagues—but only realised it was a scam after the money was stolen. 

Stay vigilant 

Given the difficulty in visually recognising a sophisticated deepfake, the focus switches to verification. If you receive an unexpected request by video call, phone, or voicemail, especially if it involves money, personal data, or anything high-stakes, take a step back. Verify the individual's identity using a separate channel.

For example, if you receive a call that appears to be from a family member in distress, hang up and call them back at their known number. If your supervisor requests that you buy gift cards or transfer payments, attempt to confirm in person or through an official company channel. It is neither impolite or paranoid; rather, it is an essential precaution today. 

Create secret safewords or verification questions with loved ones for emergencies (something a deepfake impostor would not know). Be wary of what you post publicly. If possible, limit the amount of high-quality videos or voice recordings you provide, as these are used to design deepfakes.

Hackers Impersonate IT Staff to Drain $1 Million from NFT Projects in Days

 

NFT projects lost an estimated $1 million in cryptocurrency last week after attackers infiltrated their core minting infrastructure by posing as IT personnel. The breach affected the fan-token marketplace Favrr along with Web3 ventures Replicandy and ChainSaw, among others.

Onchain investigator and cybersecurity analyst ZackXBT reported that the perpetrators rapidly issued massive waves of NFTs, crashing floor prices to zero. They then liquidated their holdings before project teams could mount a response.

According to findings, the attackers quietly embedded themselves within development teams by using fake identities. With insider access to minting contracts secured, they unleashed thousands of tokens and NFTs in a matter of minutes.

The sudden influx of minted assets tanked floor prices and allowed the thieves to convert assets into liquid funds almost immediately. Within just a week, approximately $1 million disappeared from the affected treasuries. Favrr endured some of the heaviest losses as the attackers dumped tokens faster than the market could absorb them. Replicandy and ChainSaw were hit with similar tactics—Replicandy’s floor prices collapsed nearly instantaneously.

ChainSaw’s stolen crypto remains dormant in wallets, awaiting laundering operations to funnel the funds back through exchanges. ZackXBT noted, “Nested services then further obscured the money trail.”

Investigators revealed that onchain transactions moved the stolen assets through multiple wallets and exchanges, making the flow challenging to trace. Analysts warn that following mixed outputs could take weeks as exchanges comb through extensive transaction logs. This process slows or even prevents law enforcement from freezing compromised accounts.

In a related incident from May 2025, the Coinbase data breach exposed personal information of roughly 69,461 customers after contractors were bribed to hand over user details, sparking an extortion attempt against the platform.

The NFT and Web3 infiltration closely resembles the tactics of Ruby Sleet, a group that in November 2024 targeted aerospace and defense companies before pivoting to IT firms via fraudulent recruitment campaigns. Their strategy combined social engineering, credential theft, and malware to compromise systems.

Experts say these blockchain and NFT breaches highlight how open, irreversible ledgers amplify operational errors—especially when insiders gain privileged access. As ZackXBT underscored, “When insiders gain privileges, there’s often no undo button.”

Security professionals are advising NFT and Web3 organizations to adopt stricter zero-trust models that restrict each developer’s permissions. Requiring multi-party approvals before any large-scale minting can help prevent sudden attacks. Additionally, deploying real-time monitoring tools can quickly detect suspicious activity, while thorough code reviews and identity verification for every hire are critical to closing vulnerabilities before they can be exploited.

Scattered Spider Hackers Target Airline Industry Amid FBI and Cybersecurity Warnings

 

The FBI has issued a new warning about the cybercriminal group known as Scattered Spider, which is now actively targeting the airline industry. Recent cyber incidents at Hawaiian Airlines and Canadian carrier WestJet underscore the growing threat. 

According to the FBI’s advisory released late last week, Scattered Spider is known for using advanced social engineering tactics, often posing as employees or contractors. Their goal is to manipulate IT help desk teams into granting unauthorized access—frequently by requesting the addition of rogue multi-factor authentication (MFA) devices to compromised accounts.  

The group’s typical targets include large enterprises and their third-party service providers. “That puts the entire aviation supply chain at risk,” the FBI noted. Once they gain entry, the hackers typically exfiltrate sensitive information for extortion purposes and sometimes deploy ransomware as part of their attacks. The agency confirmed that it is working closely with industry partners to contain the threat and support affected organizations.  

Hawaiian Airlines reported late last week that it had detected suspicious activity in some of its IT systems. While full flight operations were not disrupted, the airline stated it was taking protective steps. “We’ve engaged with authorities and cybersecurity experts to investigate and remediate the incident,” the company said in a statement, adding that it’s focused on restoring systems and will share further updates as the situation evolves. 

Earlier in June, WestJet disclosed that it had experienced a cybersecurity event, which led to restricted access for certain users. The airline has brought in third-party experts and digital forensic analysts to investigate the breach. 

Although the culprits haven’t been officially named, recent analysis from security firm Halcyon indicates that Scattered Spider has broadened its scope, now targeting not only aviation but also sectors like food production and manufacturing. 

“These attacks are fast-moving and devastating,” Halcyon warned. “They can cripple an entire organization in just a few hours, with impacts on everything from operations to consumer trust.”

Other experts echoed these concerns. Palo Alto Networks’ Unit 42 recently advised aviation companies to be extra cautious, particularly regarding suspicious MFA reset requests and socially engineered phishing attempts.  

Darren Williams, founder and CEO of cybersecurity company BlackFog, emphasized the high value of the airline sector for cybercriminals. “Airlines manage immense volumes of sensitive customer data, making them an extremely attractive target,” he said. “With international travel surging, attackers are exploiting this pressure point.” 

Williams added that the disruptions caused by such attacks can ripple across the globe, affecting travelers, business continuity, and public confidence. “These incidents show that airlines need to invest more heavily in cybersecurity infrastructure that can protect passenger data and maintain operational integrity.”

Recognizing the Messages That Signal a Security Breach

 


Increasingly, cybersecurity experts warn that using traditional antimalware tools can lead to a false sense of security if used in conjunction with a system of prevention. In today's rapidly evolving threat environment, this software remains a staple of personal and enterprise protection strategies. However, its limitations have become painfully obvious as the threat environment rapidly evolves. 

There is no doubt in my mind that signature-based scanners, in particular, are notoriously unreliable, particularly when faced with newly released exploits and malware variants—especially when they have just been released. One way to see the impact of this problem is to submit a suspicious file to Google's VirusTotal service, which aggregates results from 60 of the most trusted anti-malware engines in the world, but the detection rates are sometimes inconsistent and shockingly low even there. 

A major issue facing cybercriminals is the fact that they no longer have to rewrite malicious code in order to evade detection. In many cases, they are only necessary to rearrange a few bytes or make minor adjustments to render the threat completely invisible to traditional scanners, thus enhancing the accuracy of the scan. 

In order to increase accuracy, security vendors have added new layers of defence to their systems. The majority of antimalware solutions are now based on heuristic algorithms, which use analysis of program behaviour in order to identify suspicious activity rather than solely on known signatures in order to identify malicious software. 

Other companies also use virtualised sandboxes to observe files in isolation, monitor system processes in real-time, and analyse network traffic to detect threats. Although there have been significant advances in defending against cyber attacks, attackers continue to develop new techniques faster than defences can respond. The reality is that no single security product matter how advanced-can detect or block every cyber threat with total reliability. 

As malware is constantly mutating and adversaries are constantly refining their techniques at unprecedented speeds, organizations and individuals alike will need to adopt a more comprehensive approach to security. It will go well beyond simply installing antimalware software to ensure security goes well. 

The term security breach is generally understood as any incident in which sensitive data, networks, computer systems, or devices are accessed, disclosed, or tampered with without the authorization of the party involved. Such breaches do much more than simply cause inconveniences; they threaten data integrity, personal privacy, and organizational confidentiality in a way that goes far beyond mere inconveniences. 

In today's digital society where every aspect of life, including financial transactions, shopping, social interaction, and entertainment, is facilitated through online platforms, the stakes are much higher than ever. In many cases, individuals entrust their most private information with digital services and presume they will be protected by robust safeguards, which is why they trust digital services so much with their sensitive information. 

However, the reality is that as the volume and value of stored data increase, the incentive for malicious actors to exploit vulnerabilities will also increase. It is no secret that cybercriminals have been relentlessly targeting databases and applications to harvest data, such as personal information, payment information, and login credentials, all of which can then be exploited in order to commit identity thefts, financial frauds, and other sophisticated forms of cybercrime. 

For organizations, the impact of a security breach will be even greater. A compromised system does not only disrupt operations immediately, but it can also cause significant financial losses, regulatory penalties, and costly legal actions. Perhaps the most damaging of these effects, however, is the erosion of customer trust and corporate reputation, which can take years to restore. 

There is a growing awareness that security and data breach risks are not abstract threats but are in fact pressing realities that require vigilant prevention, prompt detection, and effective response measures for both businesses and individuals alike. It has been reported recently by cybersecurity company ESET that the frequency of such threats has been on the rise in recent years as a result of the escalation of these threats. 

According to the company's latest Threat Report, this has now occurred in greater numbers. There have been numerous warnings issued over the past few months regarding the increase in spam and viral outbreaks, but one of the most alarming aspects of these campaigns is that they continue to ensnare unsuspecting users despite their obvious simplicity and ease of recognition in theory. 

The ESET report demonstrates the fact that the ClickFix attacks have evolved into a highly adaptable and formidable threat, employing a wide array of malicious payloads, from info stealers to ransomware to sophisticated nation-state malware. While these attack methodologies can be applied to a variety of operating systems, Windows PCs remain the most susceptible and effective targets due to the prevalence and effectiveness of these techniques. 

A key component of ClickFix is a deceptively simple yet remarkably effective method of getting victims to fix their problems. Victims are typically instructed to open the Windows Run dialogue by pressing the Windows key plus "R," paste a string of text using Ctrl + V and press "Enter" – often under the pretext of resolving an urgent issue. 

However, while the initial script may seem harmless, it is often just a way of obtaining and silently executing a much more dangerous payload without the knowledge of the user. Performing this single action can be a gateway to a wide variety of malicious programs, including the Lumma Stealer, VidarStealer, StealC, Danabot, and many more information theft programs; remote access Trojans like VenomRAT, AsyncRAT, and NetSupport RAT; and several other tools designed to attack the user. 

There are crypto miners, clipboard hijackers, post-exploitation frameworks like Havoc and Cobalt Strike, and other specialised attack tools in this category. Security professionals have given unequivocal advice: Users should treat any unsolicited prompt urging them to perform this sequence of commands as an immediate red flag that indicates a deliberate attempt to compromise their system. 

Under any circumstances, users should be cautious of following such instructions, as they can result in a significant compromise. In order to avoid any potential problems with the application in question, users should immediately close, or force-quit, restart their computers, and then run a thorough antivirus scan. Furthermore, it is necessary to change all of the key account passwords and monitor financial statements for signs of suspicious activity. 

While ClickFix attacks are most commonly associated with Windows environments, ESET's findings serve as a timely reminder that Macs are not immune to these attacks either. It has been reported that similar social engineering tactics can be used to entice macOS users to run scripts that appear benign but, in reality, facilitate unauthorized access to their devices. 

It demonstrates how important it is to remain cautious when dealing with uninvited technical instructions, regardless of the platform that users are using. ESET, a cybersecurity company that issued a recent alert regarding the increase in these threats, has indicated in its latest Threat Report that these attacks have now risen dramatically in frequency, which is in line with other previous warnings that have been issued over the past few months. 

However, what is even more alarming about these campaigns is the persistent manner in which they continue to ensnare unsuspecting users, even though these campaigns, in theory, should be easily recognised and avoided. The ESET report demonstrates the fact that the ClickFix attacks have evolved into a highly adaptable and formidable threat, employing a wide array of malicious payloads, from info stealers to ransomware to sophisticated nation-state malware.

While these attack methodologies can be applied to a variety of operating systems, Windows PCs remain the most susceptible and effective targets due to the prevalence and effectiveness of these techniques. Despite its deceptive simplicity, ClickFix's core tactic is remarkably effective as well. When victims are contacted to resolve an urgent issue, they are typically instructed to open the Windows Run dialogue by pressing the Windows key plus the "R" and then to paste a string of text using "Ctrl + V" before pressing "Enter." 

Although it may initially seem harmless or routine, the script usually serves as a conduit for retrieving and silently executing a far more dangerous payload, without the user being aware of it. By taking this action, users will be allowing themselves to be infected by a wide variety of malicious programs, such as Lumma Stealers, Vidar Stealers, StealC, Danabots, and many more. Remote Access Trojans, such as VenomRAT, AsyncRAT, and NetSupport RA, are some of the most prominent ones, along with cryptominers, clipboard hijackers, post-exploitation frameworks like Havoc and Cobalt Strike, and a variety of other specialised tools. 

Security professionals have given unequivocal advice: Users should treat any unsolicited prompt urging them to perform this sequence of commands as an immediate red flag that indicates a deliberate attempt to compromise their system. Under any circumstances, users should be cautious of following such instructions, as they can result in a significant compromise. As a matter of fact, they should close or force-quit the application in question, reboot the system, and carry out a thorough antivirus scan immediately. 

Additionally, it is essential that all critical account passwords be changed and that all financial statements be monitored closely for signs of suspicious activity. It has been found that ClickFix attacks are most common on Windows-based operating systems, but ESET's findings serve as a timely reminder that Mac users are not entirely immune to these attacks. 

The same social engineering techniques are used to trick Mac users into running scripts ostensibly benign by guiding them in a way that facilitates unauthorized access to their devices. This reinforces the crucial need to be vigilant and sceptical when dealing with any unsolicited technical instructions, regardless of the platform. For security breaches to be minimized and an effective response mounted promptly, it is important to recognize early signs of a breach. 

Several warning signs often point towards unauthorized activity within a system or network. Unusual network behaviour, such as sudden spikes in data traffic, irregular transfers, or sudden surges in bandwidth, can be a sign of an intentional data exfiltration or malicious probing of the network. In addition to unexplained system problems, including unexplained slowdowns, frequent crashes, or prolonged downtime, it is possible for malware to exploit these vulnerabilities. 

Suspicious account activity can also raise concerns. It is usually a sign of active compromise or credential theft when a user account appears unfamiliar, logins are made at odd hours, or repeated attempts are made to log in at odd hours. As a last point to note, data anomalies can be an indication that there has been a security breach. Missing, altered, or corrupted files are evidence that there has been an attack, as are access logs that indicate the entry of unauthorized individuals into sensitive databases.

By recognizing these signs and responding swiftly, organizations can better protect their data, operations, and reputation against the increasing threats of cyber-attacks. The threat landscape is becoming increasingly complex, and as a result, individuals and organisations are faced with a need to take an increasingly proactive and layered approach to cybersecurity. It has never been more important. 

As a result, we must go beyond conventional security tools and take deliberate steps to harden systems, train users, and prepare for contingencies besides conventional tools. When users create robust incident response procedures, conduct regular security audits, and invest in employee training, they can significantly reduce the chance that simple social engineering techniques or undetected malware will succeed, thereby reducing the likelihood that they will succeed. 

It is equally important for the organisation to utilise threat intelligence feeds, maintain current software, and enforce strong access controls to remain on top of an adversary that is continually refining its methods. A culture of security awareness is crucial for organizations to create where all users are aware that vigilance is not optional but rather a shared responsibility, which is why organizations should cultivate it. 

The businesses, as well as the individuals, can strengthen their defenses, and make sure that when the next attempt comes—and it will—they will be ready to detect, contain, and recover quickly, as the next attempt will be a result of the combination of modern technologies, disciplined operational practices, and a mindset that emphasizes continuous improvement.

FBI Warns Airlines and Insurers as Scattered Spider Ransomware Attacks Surge

 

When the Federal Bureau of Investigation (FBI) sounds the alarm on cybersecurity, organizations should take immediate notice. The latest urgent warning involves the notorious Scattered Spider group, which has already made headlines for attacking major retailers such as Marks & Spencer in the U.K.—a breach estimated to have cost the company upwards of $600 million.

According to the FBI, this cybercriminal organization is now turning its focus to the airline sector, targeting companies both directly and by infiltrating their supply chains. A recent June 26 report by Halcyon ransomware analysts indicated Scattered Spider had expanded operations into the Food, Manufacturing, and Transportation sectors, especially Aviation. The FBI confirmed this, stating via email:

“The FBI has recently observed the cybercriminal group Scattered Spider expanding its targeting to include the airline sector.”

The agency also posted this statement on X, formerly Twitter, highlighting that the attackers use consistent tactics—namely social engineering. Scattered Spider often impersonates employees or contractors to manipulate IT help desks into granting unauthorized access. Their ultimate goal is to sidestep multi-factor authentication (MFA) by convincing support staff to register fraudulent MFA devices to compromised accounts.

This threat group has been on law enforcement radar for years. In 2023, the FBI and the Cybersecurity and Infrastructure Security Agency issued a joint advisory after Scattered Spider activity against commercial facilities escalated. Authorities are now working closely with aviation companies to counter this surge in attacks and assist any impacted organizations. The FBI urges anyone who suspects their business has been targeted to contact their local office without delay.

Meanwhile, the Reliaquest Threat Research Team has published a detailed profile of Scattered Spider, emphasizing that 81% of the group’s domains impersonate technology vendors. Their preferred victims are executives and system administrators with high-level credentials. Reliaquest reports that the attackers leverage sophisticated phishing frameworks such as Evilginx and even conduct video calls to deceive targets in industries like finance, technology, and retail.


Recent analysis has uncovered Scattered Spider’s connection to The Community, a loosely organized hacking collective. According to cybersecurity firm Reliaquest:

“Through strategic alliances with major ransomware operators ALPHV, RansomHub, and DragonForce…”

Scattered Spider has gained access to sophisticated tools and techniques, many of which originate from Russia-aligned and English-speaking threat actors. This collaboration has enabled the group to launch highly convincing impersonation campaigns targeting Western organizations.

Social Engineering with a Scripted Edge

To execute these campaigns more effectively, Scattered Spider actively recruits skilled social engineers. Their criteria are precise: candidates must speak native or regionally neutral English and be available during Western business hours. These operators are then equipped with:

Detailed call scripts tailored to the organization being targeted.

Real-time coaching, where a “curator” provides live guidance to handle unexpected situations during calls.

Reliaquest also noted that the group deliberately avoids targeting entities in Russia and the Commonwealth of Independent States, suggesting both geopolitical awareness and operational discipline.

Future Threat: AI-Enhanced Social Engineering


Looking ahead, Reliaquest warns that Scattered Spider is likely to adopt AI tools to further automate and scale their trust-based attacks.

While the FBI’s recent alert focused on threats to the transportation and aviation sectors, other industries are already feeling the impact. John Hultquist, Chief Analyst at Google Threat Intelligence Group, confirmed:

“We are aware of multiple intrusions in the U.S. that bear all the hallmarks of Scattered Spider activity.”

The insurance sector has emerged as a prominent new target. Jon Abbott, CEO of ThreatAware, emphasized:

“The rising tide of attacks on U.S. insurers is a serious threat that should not be underestimated.”

However, he also cautioned that this trend is not limited to insurers; organizations across all industries should take it as a warning.

Supply Chain Weakness: The Common Denominator


Many of these incidents share a dangerous pattern: attackers first compromise a smaller vendor or partner, then use that access to pivot into larger, more valuable targets.

Richard Orange, Vice President at Abnormal AI, echoed the FBI’s concerns:

“This group relies on social engineering rather than technical exploits.”

By posing as trusted contacts, attackers manipulate employees into granting access—allowing them to move laterally across networks, harvest credentials, and breach other departments or third-party systems.

Security First: Verify Every Request


Organisations are strongly advised to:

  1. Scrutinise all requests for changes to multi-factor authentication (MFA) settings.
  2. Enforce strict identity verification procedures, regardless of how convincing the caller may seem.
  3. In this evolving threat landscape, vigilance remains the strongest defense.

New Android Feature Detects Fake Mobile Networks

 



In a critical move for mobile security, Google is preparing to roll out a new feature in Android 16 that will help protect users from fake mobile towers, also known as cell site simulators, that can be used to spy on people without their knowledge.

These deceptive towers, often referred to as stingrays or IMSI catchers, are devices that imitate real cell towers. When a smartphone connects to them, attackers can track the user’s location or intercept sensitive data like phone calls, text messages, or even the phone's unique ID numbers (such as IMEI). What makes them dangerous is that users typically have no idea their phones are connected to a fraudulent network.

Stingrays usually exploit older 2G networks, which lack strong encryption and tower authentication. Even if a person uses a modern 4G or 5G connection, their device can still switch to 2G if the signal is stronger opening the door for such attacks.

Until now, Android users had very limited options to guard against these silent threats. The most effective method was to manually turn off 2G network support—something many people aren’t aware of or don’t know how to do.

That’s changing with Android 16. According to public documentation on the Android Open Source Project, the operating system will introduce a “network security warning” feature. When activated, it will notify users if their phone connects to a mobile network that behaves suspiciously, such as trying to extract device identifiers or downgrade the connection to an unsecured one.

This feature will be accessible through the “Mobile Network Security” settings, where users can also manage 2G-related protections. However, there's a catch: most current Android phones, including Google's own Pixel models, don’t yet have the hardware required to support this function. As a result, the feature is not yet visible in settings, and it’s expected to debut on newer devices launching later this year.

Industry observers believe that this detection system might first appear on the upcoming Pixel 10, potentially making it one of the most security-focused smartphones to date.

While stingray technology is sometimes used by law enforcement agencies for surveillance under strict regulations, its misuse remains a serious privacy concern especially if such tools fall into the wrong hands.

With Android 16, Google is taking a step toward giving users more control and awareness over the security of their mobile connections. As surveillance tactics become more advanced, these kinds of features are increasingly necessary to protect personal privacy.

FBI Warns of Scattered Spider Cyberattacks on Airline and Transport Sectors

 

The FBI, along with top cybersecurity firms, has issued a fresh warning that the notorious hacking group Scattered Spider is expanding its targets to include the airline and broader transportation industries. In a statement released Friday and shared with TechCrunch, the FBI said it had “recently observed” cyber activity in the airline sector bearing the hallmarks of Scattered Spider’s tactics. 

Experts from Google’s Mandiant and Palo Alto Networks’ Unit 42 also confirmed they have identified attacks on aviation-related systems linked to the same group. Scattered Spider is widely known in cybersecurity circles as a loosely organized yet highly active group of hackers, believed to be comprised mainly of young, English-speaking individuals. Motivated largely by financial gain, the group is infamous for using sophisticated social engineering techniques, phishing campaigns, and even threats directed at corporate help desks to infiltrate systems. In some cases, their intrusions have led to the deployment of ransomware. 

The FBI’s alert highlighted the group’s pattern of targeting both major corporations and their third-party IT service providers. This broad approach means that anyone within the airline ecosystem from airline staff to external contractors could be a potential target. The warning follows a series of cyber incidents involving airlines. 

Hawaiian Airlines confirmed on Thursday that it was responding to a cyberattack affecting its systems. Meanwhile, Canadian carrier WestJet reported a breach on June 13 that is still ongoing. Media reports suggest that Scattered Spider may be responsible for the WestJet intrusion. 

This latest activity comes after a string of attacks by the group on other industries, including retail chains in the U.K. and several insurance companies. In the past, Scattered Spider has also been linked to breaches involving casinos, hotel groups, and large tech firms. Cybersecurity professionals warn that the group’s evolving methods and willingness to exploit human vulnerabilities make them a significant threat across sectors, especially industries reliant on large-scale digital infrastructure and third-party vendors.

ByBit Crypto Heist: First Half of 2025 Records All-time High Crypto Theft

ByBit Crypto Heist: First Half of 2025 Records All-time High Crypto Theft

2025 H1 records all-time crypto theft

In the first half of 2025, hackers stole a record $2.1 billion in cryptocurrency, marking an all-time high. The data highlights the vulnerable state of the cryptocurrency industry. North Korean state-sponsored hackers accounted for 70% of the losses, responsible for USD 1.6 billion, rising as the most notorious nation-state actor in the crypto space, according to a report by TRM Labs

This indicates a significant increase in illegal operations, surpassing the 2022 H1 record by 10% and nearly matching the total amount stolen for the entire 2022 year, highlighting the danger to digital assets. 

Implications of nation-state actors in crypto attacks

The biggest cryptocurrency attack has redefined the H1 2025 narrative, the attack on Dubai-based crypto exchange Bybit. TRM believes the attack highlights a rising effort by the Democratic People’s Republic of Korea (DPRK) for cryptocurrency profits that can help them escape sanctions and fund strategic aims like nuclear weapons programs, besides being a crucial component of their statecraft. 

“Although North Korea remains the dominant force in this arena, incidents such as reportedly Israel-linked group Gonjeshke Darande (also known as Predatory Sparrow) hacking Iran’s largest crypto exchange, Nobitex, on June 18, 2025, for over USD 90 million, suggest other state actors may increasingly leverage crypto hacks for geopolitical ends,” TRM said in a blog post. 

Mode of operation

"Infrastructure attacks — such as private key and seed phrase thefts, and front-end compromises — accounted for over 80% of stolen funds in H1 2025 and were, on average, ten times larger than other attack types," reports TRM. These attacks target the technical spine of the digital asset system to get illicit access, reroute assets, and mislead users. Infrastructure attacks are done via social engineering or insider access and expose fractures in the cryptosecurity foundation.

Takeaways 

H1 2025 has shown a shift towards crypto hacking, attacks from state-sponsored hackers, and geopolitically motivated groups are rising. Large-scale breaches related to nation-state attacks have trespassed traditional cybersecurity. The industry must adopt advanced, effective measures to prevent such breaches. Global collaboration through information sharing and teamed efforts can help in the prosecution of such cyber criminals. 

Chinese Attackers Target France Infrastructure in Ivanti Zero-Day Exploit Campaign

 

The French cybersecurity agency stated in a study released Tuesday that three zero-day flaws impacting Ivanti Cloud Services Appliance devices triggered an attack spree in France last year that affected several critical infrastructure sectors.

The French National Agency for the Security of Information Systems reports that from early September to late November 2024, widespread zero-day exploits of CVE-2024-8190, CVE-2024-8963, and CVE-2024-9380 affected government agencies and organisations in the media, finance, transportation, and telecommunications sectors.

According to Mandiant, the attacks were carried out by UNC5174, a former member of Chinese hacktivist collectives who was probably working as a contractor for China's Ministry of State Security. The attacker, known as "Uteus," has previously targeted edge device flaws in ConnectWise ScreenConnect, F5 BIG-IP, Atlassian Confluence, the Linux kernel, and the Zyxel firewall. 

Authorities in France discovered that UNC5174 employed a unique intrusion set known as "Houken," which included zero-day vulnerabilities, a sophisticated rootkit, numerous open-source tools, commercial VPNs, and dedicated servers. Officials believe Houken and UNC5174 are operated by the same threat actor, an initial access broker who steals credentials and implements methods to gain persistent access to target networks. 

“Though already documented for its opportunistic exploitation of vulnerabilities on edge devices, the use of zero-days by a threat actor linked to UNC5174 is new,” France’s cybersecurity agency noted in the report. “The operators behind the UNC5174 and Houken intrusion sets are likely primarily looking for valuable initial accesses to sell to a state-linked actor seeking insightful intelligence.”

Earlier this year in January, the Cybersecurity and Infrastructure Security Agency said that threat actors used the three Ivanti zero-days in a chain to get credentials, execute remote code, establish initial access, and install webshells on victim networks. In April, Sysdig researchers said that they had observed the China state-sponsored hacker organisation UNC5174 use open-source offensive security techniques like WebSockets and VShell to blend in with more common cybercriminal activities. 

Numerous attackers have frequently taken advantage of long-standing flaws in Ivanti products, including espionage outfits with ties to China. Since 2021, Ivanti has shipped software with a high number of vulnerabilities across at least ten different product lines, more than any other vendor in this market since the start of last year. According to cyber authorities, cybercriminals have exploited seven flaws in Ivanti products so far this year, and 30 Ivanti faults have been discovered over the past four years in CISA's known exploited vulnerabilities catalogue. 

“We support information sharing to aid defenders. This report covers threat actor activity from last fall that affected an end-of-life version of Cloud Services Appliance. Customers on fully patched or upgraded versions were not affected,” a spokesperson for Ivanti noted in a statement. “Ivanti released a patch in 2024 and strongly urged all customers to upgrade to CSA version 5.0, which was not affected by this vulnerability. The security and protection of our customers remain our top priority, and we are committed to supporting them.”

North Korea-Linked Hackers Behind $2.1 Billion in Crypto Theft in Early 2025

 

A new report from blockchain analytics firm TRM Labs reveals that hackers stole an unprecedented $2.1 billion in cryptocurrency during the first half of 2025—marking the highest amount ever recorded for a six-month period. A staggering 70% of the total, or around $1.6 billion, has been attributed to cybercriminal groups sponsored by North Korea. 

According to TRM Labs’ “H1 2025 Crypto Hacks and Exploits” report, this figure surpasses the previous record set in 2022 by 10%, pointing to an escalating trend in high-stakes cybercrime. The report also emphasizes how North Korea has solidified its role as the leading state-backed threat actor in the cryptocurrency ecosystem.  

“These thefts are not just criminal—they’re tools of statecraft,” the report states, highlighting how stolen crypto plays a strategic role in funding the sanctioned regime’s national objectives, including its controversial weapons program. 

Much of this year’s unprecedented losses stem from a single massive incident: the $1.5 billion hack targeting Ethereum and related assets held by the crypto exchange Bybit in February. This attack is being considered the largest theft in the history of the cryptocurrency sector.  

Safe, a provider of multi-signature wallet solutions, traced the breach back to a compromised laptop belonging to one of its senior developers. The device was reportedly infected on February 4 after interacting with a malicious Docker project. The infiltration ultimately allowed attackers to gain unauthorized access to private keys.  

Both U.S. law enforcement and TRM Labs have linked the Bybit attack to North Korean hackers, aligning with prior assessments that the regime increasingly relies on crypto theft as a state-funded operation. 

This event drastically skewed the average size of crypto heists for 2025 and emphasized the changing nature of these attacks—from purely profit-driven motives to broader geopolitical strategies. 

TRM Labs noted that 80% of all crypto losses in 2025 were due to infrastructure breaches, with attackers exploiting vulnerabilities in systems that store private keys and seed phrases—essential components in controlling digital wallets. 

Analysts warn that such incidents signal a shift in the threat landscape. “Crypto hacking is becoming less about financial gain and more about political symbolism or strategic advantage,” TRM concluded. 

As the year continues, security experts urge crypto platforms and users to enhance infrastructure protection, especially against sophisticated, nation-backed threats that blur the line between cybercrime and cyberwarfare.

Denmark Empowers Public Against Deepfake Threats


 

A groundbreaking bill has been proposed by the Danish government to curb the growing threat of artificial intelligence-generated deepfakes, a threat that is expected to rise in the future. In the proposed framework, individuals would be entitled to claim legal ownership rights over their own likeness and voice, allowing them to ask for the removal of manipulated digital content that misappropriates their identity by requesting its removal. 

According to Danish Culture Minister Jakob Engel-Schmidt, the initiative has been launched as a direct response to the rapid advancements of generative artificial intelligence, resulting in the alarmingly easy production of convincing audio and video for malicious or deceptive purposes. According to the minister, current laws have failed to keep up with the advancement of technology, leaving artists, public figures, and ordinary citizens increasingly vulnerable to digital impersonation and exploitation. 

Having established a clear property right over personal attributes, Denmark has sought to safeguard its population from identity theft, which is a growing phenomenon in this digital age, as well as set a precedent for responsible artificial intelligence governance. As reported by Azernews, the Ministry of Culture has formally presented a draft law that will incorporate the images and voices of citizens into national copyright legislation to protect these personal attributes. 

The proposal embodies an important step towards curbing the spread and misuse of deepfake technologies, which are increasingly being used to deceive audiences and damage reputations. A clear prohibition has been established in this act against reproducing or distributing an individual's likeness or voice without their explicit consent, providing affected parties with the legal right to seek financial compensation should their likeness or voice be abused. 

Even though exceptions will be made for satire, parody, and other content classified as satire, the law places a strong stop on the use of deepfakes for artistic performances without permission. In order to comply with the proposed measures, online platforms hosting such material would be legally obligated to remove them upon request or face substantial fines for not complying. 

While the law is limited to the jurisdiction of Denmark, it is expected to be passed in Parliament by overwhelming margins, with estimates suggesting that up to 90% of lawmakers support it. Several high-profile controversies have emerged over the past few weeks, including doctored videos targeted at the Danish Prime Minister and escalating legal battles against creators of explicitly deepfake content, thus emphasizing the need for comprehensive safeguards in the age of digital technology. 

It has recently been established by the European Union, in its recently passed AI Act, that a comprehensive regulatory framework is being established for the output of artificial intelligence on the European continent, which will be categorized according to four distinct risks: minimal, limited, high, and unacceptable. 

The deepfakes that fall under the "limited risk" category are not outright prohibited, but they have to adhere to specific transparency obligations that have been imposed on them. According to these provisions, companies that create or distribute generative AI tools must make sure that any artificial intelligence-generated content — such as manipulated videos — contains clear disclosures about that content. 

To indicate that the material is synthetic, watermarks or similar labels may typically be applied in order to indicate this. Furthermore, developers are required to publicly disclose the datasets they used in training their AI models, allowing them to be held more accountable and scrutinized. Non-compliance carries significant financial consequences: organisations that do not comply with transparency requirements could face a penalty of up to 15 million euros or 3 per cent of their worldwide revenue, depending on which figure is greater. 

In the event of practices which are explicitly prohibited by the Act, such as the use of certain deceptive or harmful artificial intelligence in certain circumstances, a maximum fine of €35 million or 7 per cent of global turnover is imposed. Throughout its history, the EU has been committed to balancing innovation with safeguards that protect its citizens from the threat posed by advanced generative technologies that are on the rise. 

In her opinion, Athena Karatzogianni, an expert on technology and society at the University of Leicester in England, said that Denmark's proposed legislation reflects a broader effort on the part of international governments and institutions to combat the dangers that generative artificial intelligence poses. She pointed out that this is just one of hundreds of policies emerging around the world that deal with the ramifications of advanced synthetic media worldwide. 

According to Karatzogianni, deepfakes have a unique problem because they have both a personal and a societal impact. At an individual level, they can violate privacy, damage one's reputation, and violate fundamental rights. In addition, she warned that the widespread use of such manipulated content is a threat to public trust and threatens to undermine fundamental democratic principles such as fairness, transparency, and informed debate. 

A growing number of deepfakes have made it more accessible and sophisticated, so robust legal frameworks must be put in place to prevent misuse while maintaining the integrity of democratic institutions. As a result of this, Denmark's draft law can serve as an effective measure in balancing technological innovation with safeguards to ensure that citizens as well as the fabric of society are protected. 

Looking ahead, Denmark's legislative initiative signals a broader recognition that regulatory frameworks need to evolve along with technological developments in order to prevent abuse before it becomes ingrained in digital culture. As ambitious as the measures proposed are, they also demonstrate the delicate balance policymakers need to strike between protecting individual rights while preserving legitimate expression and creativity at the same time. 

The development of generative artificial intelligence tools, as well as the collaboration between governments, technology companies, and civil society will require governments, technology companies, and civil society to work together closely to establish compliance mechanisms, public education campaigns, and cross-border agreements in order to prevent misuse of these tools.

In this moment of observing the Danish approach, other nations and regulatory bodies have a unique opportunity to evaluate both the successes and the challenges it faces as a result. For emerging technologies to contribute to the public good rather than undermining trust in institutions and information, it will be imperative to ensure that proactive governance, transparent standards, and sustained public involvement are crucial. 

Finally, Denmark's efforts could serve as a catalyst for the development of more resilient and accountable digital landscapes across the entire European continent and beyond, but only when stakeholders act decisively in order to uphold ethical standards while embracing innovation responsibly at the same time.