Why Hackers Target ETFs?
The cryptocurrency industry has witnessed tremendous growth, Ether and Bitcoin are game changers. The rise has led to financial instruments like ETFs (Exchange-traded funds) that allow investors access without owning them directly. But, with the increase of crypto technologies, security questions have also surfaced.
The United States FBI recently warned about a major cybersecurity threat from North Korean hackers targeting cryptocurrency and web3 sectors. Billions of dollars go into these crypto ETFs, but investors shouldn’t be hasty to think their assets are secure.
Lazarus Behind Attacks
Lazarus (a North Korean state-sponsored group) is no stranger to the cryptocurrency market and is allegedly responsible for various attacks against famous exchanges and blockchain protocols. Officials are concerned about hackers attacking crypto-backed ETFs by targeting the underlying assets.
North Korean hackers are using advanced engineering methods to fool employees at decentralized finance (DeFi) and cryptocurrency firms. The hackers impersonate high-profile figures within an organization and or make specific scenarios based on the target’s position, business interests, or skills to get in their good books.
“The actors may also impersonate recruiting firms or technology companies backed by professional websites designed to make the fake entities appear legitimate. Examples of fake North Korean websites can be found in affidavits to seize 17 North Korean domains, as announced by the Department of Justice in October 2023,” the FBI warned.
The FBI Warning
The FBI has warned against storing private cryptocurrency wallet data on web-connected devices as they may be victims of hacking attacks. If these requests come from unfamiliar sources, organizations should be careful when using non-standard software or applications on their network.
North Korean hackers have already stolen sensitive data from Bitcoin companies by using fake job ads. The FBI’s warning is a wake-up call for web3 and cryptocurrency firms to advance their cybersecurity systems and be careful against these rising attacks.
“The actors usually attempt to initiate prolonged conversations with prospective victims to build rapport and deliver malware in situations that may appear natural and non-alerting. If successful in establishing bidirectional contact, the initial actor, or another member of the actor’s team, may spend considerable time engaging with the victim to increase the sense of legitimacy and engender familiarity and trust,” the FBI reports.