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Fake Antivirus App Hides SpyNote Malware on Android

 


SpyNote, a dangerous malware targeting Android users, has been discovered posing as a legitimate antivirus app. Disguised as "Avast Mobile Security," it deceives users into downloading it under the guise of device protection, according to a report by cybersecurity firm Cyfirma.  


Once installed, SpyNote requests permissions typical for antivirus applications, such as Accessibility Services. With these permissions, it secretly grants itself further access without notifying the user. Additionally, it excludes itself from battery optimization, allowing it to run uninterrupted in the background.  


How SpyNote Tricks Users  


SpyNote employs deceptive tactics to maintain its presence on infected devices. It mimics user gestures to stay active and displays fake system update notifications. When users interact with these alerts, they are redirected back to the malicious app, effectively trapping them in a loop. This method ensures the malware remains undetected and difficult to uninstall.  


Focus on Cryptocurrency Theft  


SpyNote is specifically designed to steal sensitive information, with a strong focus on cryptocurrency accounts. It extracts private keys and balance details for digital currencies such as Bitcoin, Ethereum, and Tether. The malware also monitors network activity to maintain a constant connection with its command-and-control servers, ensuring seamless data transmission.  


Stolen credentials are stored on the device’s SD card. Once sufficient data is collected, SpyNote erases the evidence by overwriting the card, leaving no trace of its malicious activities.  


Advanced Evasion Tactics  


SpyNote is highly skilled at avoiding detection. It uses techniques like code obfuscation and custom packaging to hide its true nature, making it difficult for security experts to analyze. The malware also identifies virtual environments, such as emulators, to evade research and detection.  


If users attempt to uninstall it, SpyNote blocks their efforts by simulating actions that prevent deactivation. For instance, it forces the device to return to the home screen whenever users try to access the app’s settings.  


Distributed Through Fake Antivirus Sites  


SpyNote spreads through phishing websites designed to look like Avast’s official download page. The malicious file, named "Avastavv.apk," is specifically targeted at Android devices. However, the phishing sites also redirect iOS users to the legitimate App Store download page for AnyDesk. Similarly, they offer AnyDesk downloads for Windows and Mac users, broadening their attack range.  


How to Stay Safe  


To avoid falling victim to SpyNote, only download apps from trusted sources like the Google Play Store. Be cautious of apps asking for unnecessary permissions, and verify download links before proceeding. Regularly updating your antivirus software and monitoring your device for unusual activity can also help protect against threats.  


SpyNote highlights the increasing complexity of malware targeting mobile users, emphasizing the importance of vigilance and proactive cybersecurity measures.

Cryptocurrency Scams Surge in 2023, FBI Reports Record $5.6 Billion in Losses

 

Despite cryptocurrency no longer dominating the headlines like it did during the 2021 to 2022 boom, cybercriminals are still leveraging it to generate billions of dollars in fraudulent income every year. According to the FBI, 2023 was the most lucrative year on record for cryptocurrency scammers, highlighting the growing scale of these crimes. 

In a report released by the FBI in 2023, it was revealed that cryptocurrency scams accounted for over $5.6 billion in losses, based on more than 69,000 complaints filed with the FBI’s Internet Crime Complaint Center (IC3). This represents a 45% increase from the previous year, demonstrating that despite market fluctuations, scams related to digital currencies are not slowing down. While the broader cryptocurrency market experienced turbulence in 2022, with the collapse of firms like Celsius, Terraform Labs, and the bankruptcy of FTX, scammers have continued to exploit the industry. 

The FBI’s report underscores that the losses from cryptocurrency scams now constitute more than half of the total losses from all online scams reported in 2022. This is a staggering statistic that demonstrates just how prevalent these schemes have become. Investment fraud remains the most common form of cryptocurrency scam, accounting for $3.96 billion of the total losses in 2023. This marks a sharp rise from the $2.57 billion lost to similar scams in 2022. The increasing sophistication of these scams has made it difficult for many people to discern legitimate investment opportunities from fraudulent ones. 

Interestingly, different types of scams tend to affect various age groups in different ways. For instance, those in their 30s and 40s were most frequently targeted by cryptocurrency investment frauds. However, individuals aged 60 and above suffered the most significant losses, with more than $1.6 billion reported by this age group alone. This data highlights the need for increased awareness and protective measures, especially for older individuals who may be more vulnerable to these scams. It’s crucial to note that the actual total of losses is likely much higher than the FBI’s report, as many victims do not report the crimes. 

FBI Director Christopher Wray urged people to report scams even if they did not suffer financial loss. According to Wray, doing so helps law enforcement stay ahead of criminals and their increasingly complex methods of defrauding people using emerging technologies. As cryptocurrency scams continue to grow in size and sophistication, it serves as a reminder that the need for strong cybersecurity measures and public awareness around digital currencies is more critical than ever. Reporting scams can not only help victims but also protect others from falling prey to similar fraudulent schemes.

Self Proclaimed “Crypto King” Aiden Pleterski Charged With $30 Million Scam

 

Aiden Pleterski, also known as the "Crypto King," and his partner, Colin Murphy, have been arrested and charged with allegedly defrauding investors of $40 million CAD (about $30 million USD) in a cryptocurrency and foreign exchange investment scam. 

Earlier this week on Wednesday, the Ontario Securities Commission revealed that Aiden Pleterski, 25, known as the "Crypto King," is facing fraud and money laundering charges. The commission also charged his colleague, Colin Murphy (27), with fraud. It stated Pleterski squandered investors' money on a lakeside house and a fleet of expensive cars. Among them was a Lamborghini, the Italian sports car totemic of crypto-based wealth.

The criminal allegations filed against the two Canadians are part of a 16-month investigation dubbed Project Swan. It coincides with a high-profile bankruptcy case involving their alleged investment fraud scheme. 

According to court filings and local media sources, Pleterski and his company, AP Private Equity Limited, received roughly $40 million CAD from 160 investors between 2021 and 2022 to invest in cryptocurrency and foreign exchange markets. Some investors apparently took out loans to fund their investments with Pleterski.

According to the findings of the bankruptcy trustee, Pleterski only invested two percent of the funds that he was given. He spent at least $16 million on personal luxury items in the interim. Among them were: International trips to the US and UK; more than 10 luxury cars, including two McLarens, two BMWs, and a Lamborghini. renting a lakefront property worth $8.4 million for $45,000 a month.

Aiden Pleterski, a self-proclaimed "Crypto King" and occasional livestreamer, has exposed his lavish lifestyle on social media. He bragged of travels to Los Angeles, London, and Miami, where he drove rental Lamborghini and McLarens. In one film, Pleterski was seen assembling a Lego Titanic model. During it, he claimed that he had spent $150,000 on Lego since 2021. 

Throughout the bankruptcy proceedings, Pleterski portrayed himself as a "20-something-year-old kid". He revealed to creditors that he was messy and did not keep financial records or track payments, CBC reported.

Meanwhile, in December 2022, a group of individuals involved in Pleterski's operation allegedly kidnapped the self-proclaimed Crypto King. According to reports, the group held him captive for three days, torturing and beating him. 

The kidnappers reportedly sought a $3 million ransom for his release. Although Pleterski was later released, a 12-minute video emerged on social media showing him injured and wounded. He apologised to his investors in what his lawyer termed as a forced apology. Four of the suspected kidnappers have since been apprehended and charged.

"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.

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.

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.