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Friend.tech Users Lose $385K in Ether to SIM-Swap Scammer

On October 5, 2023, a blockchain investigator by the name of ZachXBT stated that a single scammer had stolen 234 ETH, which is roughly comparable to $385,000, from four customers of Friend.tech over the course of a single day. A SIM-swap assault was carried out by the con artist in order to acquire unauthorised access to the accounts of the victims. It was determined that the same hacker who had drained the accounts of the four victims was responsible for the theft of the assets.

One of the victims, who goes by the Twitter handle “KingMgugga,” reported the incident while it was happening in real time, saying that they were “getting f—ing sim swapped watching it happen.” Another user who goes by the name “holycryptoroni” stated that they had a similar experience by adding, “I got swapped sorry.” In the early part of this week, four more customers of Friend.tech reported losing a combined total of around 109 ETH as a result of SIM-swap or phishing attempts.

It has been brought to people’s attention that the website Friend.tech, which is a platform that enables users to buy “keys” for access to private chat rooms, does not have very solid security measures. A company that specialises in ecosystem tools called Manifold Trading projected that twenty million dollars out of Friend.tech’s total worth of fifty million dollars locked might be at danger. The company strongly suggested that Friend.tech use two-factor authentication (2FA) in order to beef up the account’s level of protection.

The incident has also revived demands for Twitter to adopt two-factor authentication (2FA) security measures. This is particularly the case following the high-profile SIM-swap hack that occurred in September on the account of Ethereum co-founder Vitalik Buterin. Users are encouraged to delete their phone numbers from their social media profiles by “0xfoobar,” who is the founder and CEO of wallet security company Delegate. This is done in order to reduce potential hazards.

The Friend.tech incident comes amid growing concerns about the vulnerability of two-factor authentication (2FA) systems to SIM-swap attacks. On April 27, 2023, a report by Blockchain.News highlighted that a recent update to Google’s Authenticator app, which stores one-time codes in cloud storage, has raised security questions. The update makes users susceptible to SIM-swap attacks, where scammers can trick telecom operators into associating a victim’s phone number with their own SIM card. If a hacker gains access to the user’s Google password, they could compromise all authenticator-linked applications.

SEC: X Account Compromised Through Phone Number Control in SIM Swap Hack

The U.S. Securities and Exchange Commission (SEC) recently faced a significant cybersecurity breach when its X (formerly Twitter) account was hacked on January 9, 2024. This incident has put the spotlight on the security measures of financial regulatory agencies and their presence on social media platforms.

Incident Overview

On the afternoon of January 9, an unauthorized party gained control over the phone number associated with the SEC’s X account through a “SIM swap” attack. This allowed the hacker to post misleading information about the Commission’s approval of spot Bitcoin exchange-traded funds (ETFs). The false announcement, made at 4:11 pm ET, was followed by a second post stating “$BTC,” which was later deleted. While the SEC staff quickly responded by deleting the unauthorized posts and alerting the public, the incident had already caused confusion and concern among investors and market participants.

Cybersecurity Lapses

Investigations revealed that the SEC had disabled multifactor authentication (MFA) for its X account in July 2023 and did not re-enable it until after the incident. The lack of this additional security layer made the account more vulnerable to such attacks. The SEC has since reactivated MFA on all its social media accounts that offer this feature.

Broader Implications

This incident underscores the importance of robust cybersecurity measures for financial regulatory bodies, especially when communicating sensitive market information. The ease with which the hacker was able to disseminate false information highlights the potential risks associated with regulatory bodies using social media platforms for official announcements. It also raises questions about the preparedness of such institutions in safeguarding against increasingly sophisticated cyber threats.

Regulatory and Legal Responses

The SEC, along with the U.S. Justice Department, FBI, the Department of Homeland Security’s cyber unit, the Commodity Futures Trading Commission, and the SEC’s inspector general and enforcement division, are actively investigating the incident. This collaboration signifies the seriousness with which the U.S. government is treating cybersecurity threats to its financial regulatory institutions.

Conclusion

The SEC’s X account hack is a wake-up call for regulatory agencies worldwide to reassess their cybersecurity protocols, especially in an era where digital platforms play a crucial role in disseminating vital financial information. Ensuring the integrity and security of these communication channels is paramount to maintaining investor confidence and the smooth functioning of financial markets.

Trezor's Social Media Compromised, Fake $TRZR Token Presale Promoted

Trezor, a leading hardware wallet manufacturer, recently found itself at the center of a security incident that has once again highlighted the vulnerabilities associated with social media platforms. According to reports from independent blockchain investigator ZachXBT and the crypto security service Scam Sniffer, Trezor’s social media accounts were used to promote fraudulent presale token offerings for a non-existent “$TRZR” token on the Solana network.

The breach is suspected to have originated from a SIM-swap attack, a type of identity theft that exploits a vulnerability in two-factor authentication and verification processes. In a SIM-swap, attackers convince a victim’s mobile phone carrier to switch their phone number over to a SIM card in the attacker’s possession. By doing so, they can intercept messages and bypass security measures tied to the victim’s phone number.

The fraudulent promotion of the $TRZR token raised immediate red flags within the crypto community, as Trezor does not have a native token. The quick response from vigilant experts in the community helped prevent what could have been a significant number of individuals falling prey to the scam. However, the incident has raised serious questions about the security measures in place on social media platforms and the potential risks they pose for both individuals and companies in the crypto space.

Trezor, upon becoming aware of the situation, promptly informed its users of the breach and warned them not to engage with the fraudulent advertisements. In a statement released on their official channels, Trezor confirmed that they were investigating the breach and would be taking steps to prevent such incidents in the future.

The SIM-swap technique has become an increasingly common threat in the digital age, particularly within the cryptocurrency sector, where it can lead to direct financial loss. This incident serves as a reminder of the importance of robust security practices. Crypto users are encouraged to use hardware wallets like those provided by Trezor, but also to ensure that their security extends to all linked accounts and communication channels.

This event also underscores the ever-present need for continuous scrutiny by the crypto community to spot and report suspicious activities. Services like Scam Sniffer play a crucial role in protecting users by detecting and alerting them to potential threats.

The ramifications of the Trezor account breach extend beyond the immediate risk of the fake token sale. It highlights the broader implications for brand reputation and trust within the industry. As the investigation unfolds, Trezor will likely enhance their security protocols, and this event may prompt other companies within the space to reassess their own vulnerabilities.

In the aftermath of the breach, it is vital for users to stay vigilant and for companies to fortify their defenses against similar attacks. The crypto industry continues to grapple with the balance between accessibility and security, and incidents like these serve as stark reminders of the ongoing battle against cyber threats.