Notice: Trying to get property 'child' of non-object in /var/www/html/cryptovibes.com/wp-content/themes/jnews/class/ContentTag.php on line 45
Moscow, 06.07.2018 – Group-IB, an international company specializing in preventing cyberattacks and developing information security solutions, has investigated user data leaks from cryptocurrency exchanges and has analyzed the nature of these incidents. Within a year, the number of data leaks soared by 369%. The USA, Russia and China are TOP-3 countries in which registered users became the victims of cyberattacks.
In 2017, when cryptocurrencies were gaining momentum, their record-breaking capitalization and a spike in Bitcoin’s exchange rate led to dozens of attacks on cryptocurrency services. Based on data obtained from the Group-IB Threat Intelligence (cyber intelligence) system, experts from the international company Group-IB have analyzed the theft of 720 user accounts (logins and passwords) from the 19 largest cryptocurrency exchanges.
January holidays for hackers: a 689% surge in the number of leaks
The report shows a steady increase in the number of compromised user accounts on cryptocurrency exchanges. In 2017, their number increased by 369% compared to 2016. The first month of 2018 set a record: due to growing interest in cryptocurrencies and the blockchain industry, in January the number of incidents jumped by 689% compared to the 2017 monthly average. The USA, Russia and China are the countries where users are targeted most often. The study has shown that every third victim of the attack is located in the United States.
Toolkit and infrastructure used for attacks
Experts of Group-IB have identified 50 active botnets used for launching cyberattacks on cryptocurrency exchanges users. The infrastructure used by cybercriminals is mainly based in the USA (56.1%), the Netherlands (21.5%), Ukraine (4.3%) and Russia (3.2%).
The attackers use an increasingly wide range of malicious software and update their tools on a regular basis. The most frequently used malicious software includes Trojans such as AZORult and Pony Formgrabber, as well as the Qbot. At the same time, cybercriminals have modified tools previously used for attacks on banks and now successfully use them to hack cryptocurrency exchanges and gain access to users’ personal data.
What makes a successful attack possible?
This is one of the key issues covered in the Group-IB report. The answer is actually quite simple: disregard for information security and underestimating the capabilities of cybercriminals. The first and main cause is that both users and exchanges omit to use two-factor authentication. The second cause is disregard for basic security rules such as the use of complex and unique passwords.
Group-IB has analyzed 720 accounts and found that one out of five users chose a password shorter than 8 characters (see Figure).
Attack as a premonition
Experts of Group-IB draw a bleak conclusion: currently no cryptocurrency exchange, regardless of its size and track record, can guarantee absolute security to its users. At least 5 out of 19 exchanges in question fell victim to targeted cyberattacks widely covered by the media. These are Bitfinex, Bithumb, Bitstamp, HitBTC, Poloniex and, presumably, Huobi. There are various attack vectors: errors in the source code of the software, phishing attacks, unauthorized access to the user database, vulnerabilities related to storage and withdrawal of funds. However, all of them stem from the lack of attention to information security and protection of digital assets.
“Increased fraudulent activity and attention of hacker groups to cryptoindustry, additional functional of malicious software related to cryptocurrencies, as well as the significant amounts of already stolen funds signals that the industry is not ready to defend itself and protect its users”,
says Ruslan Yusufov, the Director of Special Projects at Group-IB.
“In 2018 we will see even more incidents. This situation requires prompt and effective response of all stakeholders, including experts in different areas.”
Recommendations of Group-IB experts to users and exchanges
In order to protect one’s funds against crypto-fraud, Group-IB recommends users to be mindful of their passwords (which should contain at least 14 unique symbols), never use the same passwords for different exchanges and always enable the 2FA (two-factor authentication). Experts recommend avoiding the use of public Wi-Fi (at least when carrying out exchange transactions) and paying special attention to one’s “traces” on the social media. For instance, users should not demonstrate the fact that they possess any cryptocurrency.
Recommendations to cryptocurrency exchanges are also of high importance. First of all, they are strongly advised to make two-factor authentication obligatory for all the users and their operations, conduct regular security audits of IT infrastructure and related services, and allocate resources to training and awareness-raising concerning personnel security, starting from top management (founders) and down to rank-and-file employees. To improve the cybersecurity of cryptocurrency exchanges, experts also recommend installing Anti-APT solutions, using Threat Intelligence and implementing anti-fraud solutions, as well as behavioral analysis systems. Specialists also suggest preparing cybersecurity incident response plans which will minimize potential damage.
About Group-IB
Group-IB is one of the global leaders in the prevention and investigation of cybercrimes and high-tech fraud. It is the first Russian provider of threat intelligence solutions mentioned in the reports of Gartner, IDC and Forrester. The company is a permanent member of the World Economic Forum. Group-IB has been ranked among the seven most influential players in the field of information security by the UK edition of Business Insider. The company has the largest forensic laboratory in Eastern Europe, as well as a 24/7 Computer Emergency Response Team (CERT-GIB). In 2017, the company became the leader of the Russian cyber threat research market according to IDC.
For more details, please contact:
Nika Komarova
Head of Corporate Communications
+7 910 472 24 06 | +7 495 984 3364 ext. 910
komarova@group-ib.com
Pavel Sedakov
Press Officer
+7 909 979 87 77
sedakov@group-ib.com
Read more: https://www.group-ib.com
https://www.group-ib.com/blog/
telegram | facebook | twitter | linkedin
English
Arabic
Dutch
French
German
Italian
Polish
Portuguese
Spanish