Singapore police recommend hardware wallets against crypto drainers
Singaporean authorities have issued a cybersecurity warning to citizens after reports that cryptocurrency drains or wallet drains are being used to steal money from investors across the ecosystem.
The Singapore Police Force (SPF) and the Cyber Security Agency of Singapore (CSA) have issued a joint advisory to raise awareness of cyber-attacks targeting crypto wallets, a form of crypto-drying malware. Phishing attacks use cryptojackers to extract funds from users' wallets without permission.
(1/2) As the use of cryptocurrencies becomes more popular, cybercriminals are increasingly targeting cryptocurrency wallet holders.
— CSA (@CSAsingapore) January 31, 2024
Authorities have raised concerns about commercial crypto-mining kits that allow novice cybercriminals to arm themselves with sophisticated malware at no upfront cost. Instead, attackers using a sewer-as-a-service (DaaS) model split a predetermined percentage of the loot with the service provider.
As described by SPF and CSA, crypto-drainer-related attacks begin with phishing campaigns – often involving hacking into popular social media accounts or sending spoofed emails to users hacked from the databases of major service providers.
(2/2) CSA and @singaporepoliceforce advise on the use of cryptojacking to facilitate cryptocurrency theft and how individuals can protect themselves against it. Read the joining advice here. https://t.co/FCnjkjrRdE
— CSA (@CSAsingapore) January 31, 2024
Unsuspecting victims who click on phishing links are redirected to a fake commercial website that encourages users to link their Web3 wallet. A malicious contract is then injected into the victim's system, allowing hackers to withdraw funds without further authorization.
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In Singapore, such an attack has not yet been reported, according to the consultant. However, the act was recognized by the hackers. MS Drainer, the popular off-the-shelf crypto drainer, helped hackers steal $59 million worth of cryptocurrency in 2023.
1/ Alert: ‘Wallet Drainer' linked to phishing campaigns on Google Search and X Ads, costing more than 63,000 victims $58M in 9 months. pic.twitter.com/ye3ob2uTtz
– Fraud Fraudster | Web3 Anti-Scam (@realScamSniffer) December 21, 2023
The stolen funds are liquidated using services such as cryptocurrency microcrypto mixers, which greatly reduce the chances of recovery.
Singaporean authorities have recommended the use of hardware wallets for security against wallet drain attacks, among other precautions. While advising crypto investors to do thorough research, the advisory asks Singaporeans to report such incidents to authorities and crypto service providers.
Most importantly, in such cases, victims should revoke any suspicious token authorization and transfer the remaining funds to another secure wallet address to avoid further loss of funds.
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