Your weekly overview of what’s happening in the crypto security industry.
Japanese Crypto Exchange Liquid Suffers $84M Hack
Japanese crypto exchange Liquid has announced that its hot wallets suffered a hack. Notable, hot wallets with different cryptocurrencies were hacked, showing once again that for convenience, such as the ability to deposit or withdraw funds from your wallet immediately, you sometimes have to sacrifice security. Cold wallets are a more secure storing method against this type of attack since they are not directly integrated with the web network.
Binance Makes KYC Mandatory For New Users
New users of Binance will have to upload their IDs to use its services. This measure is yet another step of Binance aimed at strengthening the AML policy and general users’ security. According to CEO Changpeng Zhao, the company has increased the staff of AML officers five times over the past year, indicating serious compliance strengthening measures. As global practice shows, companies that save on AML and security measures end up losing money, reputation, and sometimes even a license.
AriseCoin Inventor Sentenced to 5 Years in Prison
The inventor of AriseBank turned out to be a scam was sentenced to 5 years in prison. Jared Rice described its creation as the ‘first decentralized banking platform’ and encouraged potential investors to purchase its native token, AriseCoin. He spent investors’ funds to cover his personal needs and, as the investigation proved later, initially misled customers not intending to return the investment.
The story is as insightful as it can get for all parties involved in similar affairs – scammers looking for quick profits and naive customers not doing their research before investing.
Hong Kong Police Arrest 19 People in International Cryptocurrency Scam
The scam duped around 170 victims of about $11 million Hong Kong dollars (US$1.4 million). One of the law enforcement representatives noted that “the fraudsters used a fake app and some kind of fake web pages … to deceive people”.
Once again, people’s questionless belief made it possible. The scammers flashed photos of yachts, sports cars, and other luxury items on social networks, demonstrating the most primitive deception scheme of all time that nevertheless proves to be working over and over again.
PhishLabs: Crypto Exchanges Saw a 10x Increase in Phishing
According to a new 2021 PhishLabs report, a significant part of phishing attacks is carried out using social media. More than half of all social media attacks against cryptocurrency companies (54.7%) involve the use of brand names as well as the names of executives and employees of the firm.
There is an evident trend of gradual withdrawal from the classic “bank employee” call to social networks, which is not surprising. Call-based phishing attacks are usually carried out to compromise credit card data or hack personal banking accounts or other critical data storage. Chances of reaching a cryptocurrency owner during a random call are much lower than running into a popular bank’s customer. Nevertheless, transitioning of social engineering into social networks is evident, and this type of phishing will keep on arising.
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