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Cryptocurrency Fraud and Malware Scamming Investors

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Cryptocurrency is hot right now, and whenever something is hot, hackers pay attention. Research has recently showing that more than 10 percent of all the funds that were raised through the ICOs, initial coin offerings, simply disappeared.

CryptocurrencyIt is popular for ICO’s to be used as an early-stage investment form. So, instead of buying shares, investors buy digital tokens. However, the companies that sell these ICOs don’t have any product to give investors except a whitepaper. This whitepaper tells them how things could theoretically work, the investment scheme, but it seems, it doesn’t always happen that way.

Sometimes the Money Just Disappears

Ernest & Young took a look at over 370 ICOs. The firm found that out of the $3.7 billion raised through these offerings, about $400 million vanished. Where did it go? Research shows it went to hackers using phishing attacks.

It’s not clear if the researchers looked at companies that didn’t deliver or disappeared. For instance, one company, Tezos, pulled in about $232 million during an ICO. However, investors got nothing. That looks like fraud.

How Malware is Responsible for Missing Money

At this point, you might be wondering how these scams are happening. One way is criminal hackers using malware. Specifically, it’s Satori. Satori, which is the actual malware responsible for this, is definitely wreaking havoc with investors who are looking for a huge return. Netlab 360, a Chinese-based company, released a report recently pointing the finger at Satori, which is affecting the Claymore Miner software.

By using mining software, investors are able to obtain the cryptocurrency. However, the malware is making this impossible getting in the middle of the transaction. After the malware gets control of the software, it replaces the address of the wallet with one that is controlled by the hacker.

So, the user believes that this currency is coming into their wallet, but in reality, they are doing the work and someone else, the hacker, is getting the currency. What’s even worse is that the owners of the wallets don’t even realize this is happening unless they look at their software configuration.

In total, researchers have determined just over one Etherium coin has been hacked, so it’s not extremely profitable at this point, yet. However, there is great potential, and when it comes to cybercriminals, they will certainly find a way.

ROBERT SICILIANO CSP, is a #1 Best Selling Amazon author, CEO of CreditParent.com, the architect of the CSI Protection certification; a Cyber Social and Identity and Personal Protection security awareness training program.

Survey Shows Most People Back Up…But Not as Often as They Should

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According to a new survey, we now have a good idea of the habits of the regular person in regard to backing up their devices. The survey, which covered almost 3,000 people, looked at people around the world. What it shows is that 91 percent of people back up their devices and their data. But, 68 percent of people still lost data because of a different reason. These include accidentally deleting the data, software or hardware failure, or even because they hadn’t backed up their data recently. The truth is, only 41% of companies and people back up each day, which leaves most of us…and most businesses…vulnerable to data loss.

surveyThe data from this survey stress how important it is to implement some type of cyber protection strategy for a business, which includes backing up data several times a day, and using the 3-2-1 backup rule. This is creating three copies of your data (a single primary copy and two backups), storing your copied on two different types of storage option, and then storing one of the copies in the cloud or remotely.

Change the Game with Cyber Protection

With more cyberattacks happening all of the time, the traditional methods of backing up our data is no longer working. We simply cannot rely on only backing up our information. It is way too dangerous.

Cybercriminals will target backup software with their own ransomware, and then try to modify the files, which makes it even more important to protect your information.

Recommendations for Cyber Protection

There are a number of different ways you can protect your personal or company’s information. Here are just five things you can do to ensure that your data is relatively safe:

  • Create a backup of your most important data…always – Keep a number of different copies of your backup locally and in the cloud. You want to do it locally so you can access it quickly and frequently, and you want to save it in the cloud to make sure that even if there is a fire, flood, or other disaster, your data is safe.
  • Ensure your OS and applications are all the current versions – If you are not updating your OS or apps, it means that they are much more vulnerable to getting hacked. These updates often contain patches and fixes that can keep cybercriminals out.
  • Beware of any suspicious links, emails, or attachments – Most ransomware and virus infections are created by using social engineering, and they trick unsuspecting people into opening these infected attachments or clicking on a link that installs malware to the device or network.
  • Install anti-virus, anti-ransomware, and anti-malware software – While you are doing your automated updates for your apps and OS, you should also be using all of these different software options, too.
  • Consider using an integrated cyber protection solution – You want to choose an option that combines anti-ransomware, anti-virus, backup, patch management, and a vulnerability assessment all in a single solution. This type of solution increases efficiency, ease of use, and the reliability of your protection.

ROBERT SICILIANO CSP, is a #1 Best Selling Amazon author, CEO of CreditParent.com, the architect of the CSI Protection certification; a Cyber Social and Identity and Personal Protection security awareness training program.

 

Protecting Your Company and Yourself from COVID-19 Hackers

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Many people are asking how they can not only protect themselves, but also their organizations, from all of these COVID-19 hacks that are currently popping up.

As with any other phishing scam, vigilance is extremely important. We are certainly going to have to keep on our toes for months, or even years, as this fallout from the pandemic could be around for a long time.

You have to be suspicious of each and every unsolicited email, phone call, or text, especially if someone is looking for account or contact details, or they ask to share personal information. If you feel like information seekers are asking for too much, you should vet the email, dig deeper, do some web searches, and make sure its legitimate.

Don’t use any links or phone numbers within the email of based on the call until you do this. If you get a recorded message, make sure you don’t press any button when asked. If you do, you may be giving them some type of approval and you end up being a victim.

  • In response to ransomware, you should make sure that you are totally backing up your data on all of your devices.
  • For any online account you have, set up or turn on two-factor or multi-factor authentication when you can. This, at least, makes those accounts less likely to be breached, even if someone does get ahold of some of your information.

You might think this is a pain right now, but it definitely won’t be a pain if your information is breached and you start to lose money.

There are many organizations that are being forced to give their employees access to their networks from home…and in most cases, they never planned for that. This working from home increases the criminals attack surface. So, the network is probably more vulnerable, and in some cases, security policies and processes are even being bypassed to ensure all employees have access to it. This comes at a big risk, and with every employee who has access to the company network, there is an opportunity for a hacker to get inside.

Most cybercriminals who go for this type of hack want to get access to this so they can get sensitive information and turn it into cash. Other hackers want to go big time, and they will use the credentials that they are hacking to use in attacks like “password stuffing/spraying,” to access multiple critical user accounts. With a larger “attack surface”, these companies are definitely at risk and because of staff working from all over the place, any attempt to break into the network could go unnoticed until it is too late.

Corporate cybersecurity and IT teams are working hard, but they, too, are generally working from home. With even more workload and more remote information to go over, this also means that they don’t have the time to pay as close attention as they should. This makes things even more dangerous, so keep your eyes open.

ROBERT SICILIANO CSP, is a #1 Best Selling Amazon author, CEO of CreditParent.com, the architect of the CSI Protection certification; a Cyber Social and Identity and Personal Protection security awareness training program.

Beware of these Pandemic Phishing Scams

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These days, even though we are all, for the most part, stuck at home, trying to be safe from COVID-19, that doesn’t mean that we are safe from cybercrime. Cybercriminals continue to target victims, even in this environment, and many of these scams are related to COVID-19. This is pretty common when something like a crisis comes down, so you have to remain vigilant as you go through your daily life. Here are some of the things you should be looking for and being aware of:

phishing scamRelief Fund Scams

As we look towards our government officials for help, they have been sending out money to people who have lost their jobs or become impacted financially by the COVID-19 crisis. Criminals have started to create phishing scams that look identical to the correspondence that might come from the government. They do this to trick people into revealing their personal information. Currently, if you are in the UK, Australia, or the US, you are probably being targeted.

Infection Maps that are Malicious

Cybercriminals are also taking advantage of the public’s interest in COVID-19 infection maps. Organizations like Johns Hopkins are creating these maps, but cybercriminals are following close behind and releasing their own. All they have to do is set up their own websites, and then stick malware in them. They can do this for little to no money, and then they can make a huge profit thanks to ID theft and other dastardly deeds.

Impersonating Official Health Organizations

You also need to keep an eye out for cybercriminals who are impersonating official health organizations, including WHO – the World Health Organization, or the CDC – Centers for Disease Control. They are doing this by designing a number of different phishing scams. These started all the way back in February, and they are continuing to be sent. The criminals are setting up a sense of urgency, so that people are more apt to give up their information.

Scams with COVID-19 Testing Kits

There is also a lot of interest in COVID-19 testing kits, and as you might imagine…the bad guys are targeting these people, too. Not only are these scams spreading via email, according to the FCC, Federal Communications Commission, but also with robocalls, text smishing, and more. The FCC has even announced that it has found a big range of robocall scams that are associated with coronavirus, including things like debt consolidation, work at home opportunities, and even student loan repayment plans. There are also specific scams that are targeting small businesses.

Medical Supply Scams

Finally, we have medical supply scams. These are similar to the testing kit scams but the cybercriminals are using these medical supplies, like masks and gloves, as a lure to get people to give them money. There are more and more of these websites popping up with huge discounts on medical supplies. Many of these sites are offering limited-time sales and want Bitcoin for payment, which is a big sign that you could be getting scammed.

ROBERT SICILIANO CSP, is a #1 Best Selling Amazon author, CEO of CreditParent.com, the architect of the CSI Protection certification; a Cyber Social and Identity and Personal Protection security awareness training program and the home security expert for Porch.com

Cybercriminals are Stealing from you by Using these COVID-19 Scams

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It is estimated that COVID-19 fraud has cost Americans more than $13 million, and it is rising. This comes from the US government.

The US Federal Trade Commission has added up the costs of all of these scams. They are looking from those that started from the 1st of January to the current week. What are these numbers made of? Mostly vacation and travel scams, as these have added up to $4.7 million lost. Online shopping scams are also out there, but they have only added up to $1.4 million.

The global spread of coronavirus has forced people to change the way they live, work, and even socialize. This is going to be the case for some time to come, and because of this, the cybercriminals have jumped onto the bandwagon, and they know…if they are lucky…this could be a lucrative thing for them.

These COVID-19 scams are definitely playing on the fears of the general public, and the goal of these cyber criminals is to get their targets to give them their personal information. Then, the bad guys use this information to commit fraud. In other words, they take money directly out of the hands of the people who need it the most.

What are the Tactics that People are Using to Hack Their Victims

There are a number of COVID-19 tactics that are being used to trick people into giving away their personal information, and in some cases, their hard-earned money.

Most of the tactics are combining phishing texts and emails with fake sites. Here are some of the things that are commonly found in a number of different languages:

  • Malware that is sent by “official” feeds, which are not really official. These include things like real time COVID-19 maps, which are actually meant to spread malware.
  • Messages that are offering an iPhone 11…for free…to help pass the time at home.
  • Messages offering payday loans to help people who are having problems with money.
  • Scams advertising products that are supposedly “cures” for COVID-19.
  • Coronavirus-themed domain names that seem to offer official information about the virus, but instead, simply spread viruses.
  • Emails from sources that show they are from WHO, the CDC, or even local governments.
  • Emails that ask for donations for COVID-19 research
  • Emails that look like they are coming from the government that have fake links allowing you to claim a tax refund.
  • People from the UK have reported getting fake emails saying they are from the BBC and the person’s TV license is expired. Then, they are asked to go to a website and update their details.
  • Phone calls are coming that are recorded and telling people that their broadband access will be cut off within 24 hours thanks to “illegal activity,” and the user must “press 1” to speak with a person to fix it. Once you are connected, they do all they can to get personal information from you.
  • Emails from people claiming to be “company officials,” that contain and attachment with the names of people within the organization that have tested positive for COVID-19.

No person nor industry is immune to this, so keep your eyes open and stay safe.

ROBERT SICILIANO CSP, is a #1 Best Selling Amazon author, CEO of CreditParent.com, the architect of the CSI Protection certification; a Cyber Social and Identity and Personal Protection security awareness training program and the home security expert for Porch.com

A “Credit Profile Number” is a fake SSN, and it Works

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Cyber criminals are constantly trying to stay one step ahead of the good guys, and there is now another scam out there that you should know about: synthetic identity theft. Basically, the criminals take information from someone, and then make up the rest. They also often use fake Social Security numbers, called CPNs, or “credit profile numbers,” or names.

This type of identity theft shows us that our credit system is more vulnerable than we might think. Basically, it is easy to create a credit file on these identities, and once they have that, they can get a credit card or loan.

Of course, using a CPN like this on an application for credit card or loan is illegal, but lenders currently don’t have a conclusive way of distinguishing a real Social Security number from one of these fake ones. The Social Security Administration generates SSNs randomly. This makes it difficult for a lender to notice a fake one. Technically, a lender can contact the SSA and cross-check, but most of them don’t. Why? Because the SSA requires a handwritten signature from the person who has that SSN, and this is a pain in the neck for lenders.

So, of course, the best thing to do is to create a way for lenders to instantly check to see if a Social Security number is valid or not, and as of now, they do not have the capacity to do this. Lenders do, however, use their own fraud-detection tools, but these requests for credit still fall through the cracks.

This practice also has created more open windows for fraudsters, because they know that the system is vulnerable. It’s true that many lenders won’t accept a credit application from someone with no history of borrowing, which is the case with a CPN, but some still do, and the more activity the file sees, the more likely it is that credit will be given. Once credit is approved, a full credit report is created. Though it likely won’t be a high amount of credit, many lenders take a chance on new borrowers, and at a minimum, extend a couple of hundred dollars. Some people will even get a card that has, say a $300 limit, and use the card for a time. Once they establish a good payment history, they can get a credit increase, and that’s where the fun really begins.

This is just one more scam that you should be aware of, and one more reason to keep your private and personal information safe.

Robert Siciliano personal security and identity theft expert and speaker is the author of Identity Theft Privacy: Security Protection and Fraud Prevention: Your Guide to Protecting Yourself from Identity Theft and Computer Fraud. See him knock’em dead in this Security Awareness Training video.

Researchers Say Office of Personnel Management Hack Leads to Ransomware

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In June, 2015, it was revealed by an anonymous source that the Office of Personnel Management was hacked. This office, which administers civil service, is believed to have been the target of the Chinese government. This is one of the largest hacks in history involving a federal organization.

Slowly, the motivation behind the hacking is being understood. At first, it seemed obvious, the stolen data being personally identifiable information, which is what was taken can be used for new account fraud. But in government breaches, they usually look for military plans, blueprints, and documents that deal with policy.

The question, of course, is why did the hackers focus on this information? Well, some of the data that was taken was used to launch other attackers against contractors, and this resulted in the access to several terabytes of data.

Now, those who have become victims of this attack have found themselves being the target of ransomware.

Security experts have recently noticed that the victims have been getting phishing emails, and these messages look like they are coming directly from the Office of Personnel Management. When these emails arrive, the body and subject of the message seem as if the email contains an important file. When the unsuspecting victim downloads the .ZIP file, however, they instead receive a type of ransomware called Locky.

These attacks are much more dangerous than the average phishing attack. This is mainly due to the fact that they are being received by those who have worked with the Office of Personnel Management before. Thus, they have seen the genuine emails from the office, which look remarkably similar to the fake ones. The only thing that set the two emails apart was a typo that said “king regards,” instead of “kind regards,” and a phone number that doesn’t work. These are details that many people overlook, which makes it easy for hackers to be successful with these schemes.

Who was Really Behind This Hack?

Though experts believe that the Chinese government is behind this hack, there are some facts that look a bit fishy. For instance, since personal data was taken and data has been taking hostage, this seems much more like a typical cybercrime operation instead of something that a nation would do. After all, why would China be looking for a few hundred dollars from people who want their files back?

Of course, this could be a smokescreen and someone could just be using this attack as a smokescreen…and while experts are focused on this, the real attack could be planned for the future.

Robert Siciliano personal security and identity theft expert and speaker is the author of 99 Things You Wish You Knew Before Your Identity Was Stolen. See him knock’em dead in this identity theft prevention video.

The Mind of the Misunderstood Cybercriminal

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There are a number of misconceptions about cybercrime and those who engage in it. To a cybercriminal, there is no target that is special unless they have a grudge or beef with a particular entity, and as a rule, they will often cast their net wide and then move to attack the easiest prey they find.

11DSecurity specialists must never underestimate the actions of a cybercriminal. Records are easily shared and sold, and they are highly valued. This is especially the case when personal and medical information is the focus.

Any plan that the security professionals design must be focused on these types of crimes. They must also be aware of any upcoming threats and ensure that all proper backups of data are in place.

What are the Common Misconceptions Associated with Cybercrime and Cybercriminals

The most common misconception about cybercriminals that is often observed is that these people have diverse experience and skills, which allow them to initiate a huge range of cyberattacks. This would mean that they would earn a large amount of money as a result. However, the truth is, many of the cybercriminals out there use automated software, which means they don’t require much training at all. According to a recent survey, the vast majority only make from $1,000 to $2,000 a month. But as many as 20 percent of cybercriminals are making more than $20,000 a month.

Who are the Criminals Behind Cyber Crimes?

For the most part, those who commit cybercrimes have a clean criminal record and do not have any ties to any organized groups. These criminals usually also have a stable job during the day and participate in these cybercrimes in their free time. Often, these people are introduced to cybercrimes during college, and many remain active in the industry for several years after they begin.

The other cybercriminals have a bit of a different background. These people belong to cybercriminal syndicates that work within a hierarchy. There are highly skilled members of these groups, and each have certain responsibilities to ensure the success of their organization.

Generally, these groups are controlled by a “boss,” who is the mastermind. They are typically highly educated, intelligent, and some are often connected with the banking industry, as they must arrange for things like money laundering. Additionally, these groups often include people who are professional forgers, as they often require fake documents to serve as paperwork to “prove” their schemes, and then the group needs those skilled in hacking, software engineering, and other technical operations. Some of the groups also include those familiar with law enforcement, as they are skilled with things such as gathering information and counter-intelligence.

What is often so surprising is that members of these groups are often highly respected members of their communities, and many are seen as successful people in business. These people are also often connected to hospitality, real estate, or the automotive industry.

These people do not think of themselves as regular criminals, and they rarely cross paths with others whom the general public might deem as “criminal.” They usually hide in the shadows and avoid any actions that might bring attention to them.

To avoid all of this, it is best to use the assistance of a professional. They are familiar with how these communities run and how they react to certain actions. There are a number of way to research the dark web in a secure and safe manner without risking the integrity of your organization, but the professionals are best for this job. It is also important for businesses to utilize security teams. This ensures that they are capable of obtaining the data and stimulating the environment.

Robert Siciliano personal security and identity theft expert and speaker is the author of 99 Things You Wish You Knew Before Your Identity Was Stolen. See him knock’em dead in this identity theft prevention video.

Small Business a favorite Attack Vector

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Small businesses are hardly immune to attacks by hackers.

  • The illusion of low attack risks comes from the publicity that only huge corporations get when they are breached, like Target, Sony and Anthem. These are giants, so of course it makes headline news.
  • But when a “ma and pa” business gets attacked, it’s not newsworthy.

11DIf you own a small business, ask yourself just how the mega-giant Target got infiltrated by cybercriminals in the first place. Answer: a ma and pa HVAC vendor of Target’s!

Cybercriminals thrive on the myth that only big companies get attacked. They know that many small outfits have their guards down; have only rudimentary security measures in place. Never assume you know everything that a hacker wants—or doesn’t want.

Think of it this way: Which burglar is more likely to make off like a bandit? One who attempts to infiltrate a palace that has a 10-foot-high stone wall, surrounding a moat that surrounds the palace, with motion sensors everywhere that set off piercing alarms; an army of Dobermans; and a high tower where guards are keeping a lookout?

Or the burglar who tries to break into a small townhome with only a deadbolt and window screens for security? Sure, the palace has millions of dollars worth of wall art alone, but what chances does the burglar have of getting his hands on it? The little townhome just might have some electronics and jewelry he can sell underground.

No business is too small or its niche too narrow to get a hacker’s attention; just like any burglar will notice an open ground floor window in that little townhome at 3 a.m.

  • Never use lack of funds as an excuse to cut corners on security.
  • Share security information with competitors in your niche.
  • Consider the possibility that a cyber attack can be an inside job in your little company—something relatively easy to pull off (e.g., every employee probably knows the direct e-mail to the company owner).
  • Get cyber attack insurance. A halfway-sized cyber attack could cripple any small company and have tangential fallout.

Robert Siciliano CEO of IDTheftSecurity.com, personal security and identity theft expert and speaker is the author of 99 Things You Wish You Knew Before Your Identity Was Stolen. See him knock’em dead in this identity theft prevention video.

Your Ransomware Response: Prepare for the Worst

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A ransomware attack is when your computer gets locked down or your files become inaccessible, and you are informed that in order to regain use of your computer or to receive a cyber key to unlock your files, you must pay a ransom. Typically, cybercriminals request you pay them in bitcoins.

binaryThe attack begins when you’re lured, by a cybercriminal, into clicking a malicious link that downloads malware, such as CDT-Locker. Hackers are skilled at getting potential victims to click on these links, such as a phony e-mail, apparently from a company you do business with, luring you into clicking on a link or opening its attachment.

And if you find your computer is being held hostage:

  • Report it to law enforcement, although it’s unlikely they can provide help. It’s just good to have it recorded.
  • Disconnect your computer from its network to prevent the infection from spreading to other shared networks.
  • You need to remove the ransomware from your computer. Remember, removal of the ransomware won’t restore access to your files; they will still be encrypted. To remove ransomware from your computer, follow the steps provided here.
  • If you already had your data backed up offline, there’s no need to even consider paying the ransom. Still, you will want to remove the ransomware and make sure your backup solution was working.
  • But what if very important files were not backed up? Prepare to pay in bitcoins. The first step is to find out what the experts say about making payments in bitcoin.
  • The crook will be essentially impossible to trace. You’ll be required to make the payment over the Tor network (anonymous browsing).
  • Finally, don’t be shocked if the crook actually provides you the decryption key—essentially a password; ransomware thieves often follow through to maintain being taken seriously. Otherwise, nobody would ever pay them. But it would not be unprecedented to not receive the key. It’s a gamble.
  • The best course of action is to prevent a ransomware attack, and that means looking for all the clues to malware and phishing scams. Don’t let threatening e-mails, saying you owe back taxes or bank fees, jolt you into hastily clicking a suspicious link or attachment. If you regularly back up your data online and to an external drive, then you’ll never feel you must pay the ransom.

Robert is a security analyst, author and media personality who specializes in personal security and identity theft and appears regularly on Good Morning America, ABC News and The TODAY Show.