Exploitation is a sophisticated form of fraud that allows hackers to cause billions of dollars in losses to projects and users.
So what is an exploit? How dangerous are exploits? How to recognize the signs of exploits and avoid them?
What is an exploit?
Exploitation is a concept used to describe a cybersecurity attack in which a hacker exploits a security vulnerability to penetrate and take control of any system with the goal of stealing data and critical assets.
Usually, exploits mainly occur in computer systems, operating systems, hardware, software and other fields.
In the cryptocurrency market, hackers can attack and exploit many targets, such as smart contracts, decentralized applications (dApps), project websites, bridging protocols, projects or oracle programming languages, etc., to steal property and cause damage to individuals and organizations. .
How do cryptocurrency attacks work?
Any user or item that interacts with any internet-connected device is vulnerable. Hackers carry out attacks in various ways, mainly targeting projects or users.
Item attack form
This pattern stems from mistakes developers make when writing and deploying products or applications. Although these errors are unintentional, they create vulnerabilities and pose potential risks to the system.
After hackers discover these security vulnerabilities, they will find ways to exploit them and use corresponding attack support software or tools.
In the cryptocurrency market, projects mainly suffer from the following forms of attacks: 51% attacks, flash loan attacks, and wash trades (explained later).
Some other methods used by hackers, such as Remote Exploitation, Local Exploitation, zero-day clicks, pivot attacks, etc., can all directly target this project. However, these forms are not common in the cryptocurrency market.
User attack form
Hackers not only target projects, but users as well. Typically, hackers use social engineering methods (non-technical attacks or psychological manipulation attacks) to distribute malware (malware) by posting ads/sending spam emails posing as links to authorities and organizations.
Users who accidentally click on these links create the conditions for hackers to obtain information and attack their devices or assets.
Some common forms of attacks include: client-side exploits (attacks on client applications), phishing attacks...
Additionally, hackers can spread malicious code to many devices on the same network, looking for vulnerabilities like EternalBlue and Bluekeep attacks. This form requires no user interaction and you can become a victim as long as there is a network connection in the same system.
Leveraging influence in the cryptocurrency market
Exploit attacks are a threat to many technological devices in cyberspace. Given the nature of blockchain technology and cryptocurrencies, this is a market with a high probability of being hacked, which could have many consequences, such as:
As a result, many platforms were affected, with market capitalization and lock-in value (TVL) plummeting.
Cause damage to the property of users and investors.
This causes the project to suffer losses in terms of product, property, and reputation in the eyes of users.
In 2022 alone, malicious attacks caused hundreds of millions of dollars in losses to a series of protocols/projects such as Wormhole ($321 million), Polynetwork ($611 million) or Ronin Bridge ($625 million).
Itâs not just the cryptocurrency market, exploitative attacks also have an impact on users in cyberspace. Wannacry is a typical example, which not only threatens global network security but also causes many other losses.
Wannacry is a software that uses self-propagating malicious code to ransom and encrypt hard drives on computers using the Microsoft Windows operating system and devices on the same LAN (internal computer network).
Wannacry used the EternalBlue exploit to infect more than 230,000 computers in more than 150 countries. The software then demands a ransom of between 300 and 600 euros in Bitcoin to recover important files from the computer.
This attack affected:
Many NHS hospitals in the UK, where Wannacry in particular compromised many computers, made emergencies impossible.
One of Europe's most efficient car plants - Nissan Motor UK Manufacturing, based in Tyne and Wear - had to halt production after Wannacry infected their systems.
Common attack methods
Currently, various forms of attack exploits have been developed in different computer environments and depend on the hacker's goals.
Classification of attack exploits is also relatively complex as it is based on many different criteria. For example:
Based on the results of attack exploitation, there will be elevation of privilege attacks (EoP), denial of service attacks (DDoS) and deception attacks (spoofing attacks).
Based on the way hackers communicate with security vulnerabilities, such as remote exploit (remote exploit), local exploit (local exploit), and client exploit (client exploit).
Other forms: zero-day exploits, zero-click, or pivot attacks.
Remote Exploitation
Remote exploitation refers to network operations that remotely exploit security vulnerabilities without prior or direct access to the target system.
Remote exploits have a wider scope of operations than local exploits and can target business systems, personal computers, etc. The danger in this form is that the program/software is pre-programmed to automatically attack if the device is compromised.
local exploit
Local exploitation is a form of direct requesting access to a vulnerable device. Typically, a hacker can connect via a USB connection containing malicious code⊠After successfully exploiting a target system, the hacker can elevate access beyond the normal privileges granted by the system administrator.
The disadvantages of local exploits are that the attack scope is limited, usually on internal computer network equipment, and the scale is more limited than remote exploits. In addition, the operation of local exploitation is mainly manual, which is different from the automatic programming software of remote exploitation.
Client Exploitation
A client-side exploit is an attack that requires user interaction, possibly through social engineering. This is an attack method that affects the human mind to deceive and steal important information and data.
Attackers can impersonate employees, police officers, authorities representatives, etc. to trick users into providing information for profit.
Common forms of social engineering:
Phishing: Attackers impersonating reputable organizations.
Voice phishing attacks: How to use fake voices to attack.
SMS phishing attack: Attack via text message.
Zero-day exploits
A zero-day exploit is an attack on a computer that describes a critical security vulnerability in a piece of software, such as an application or operating system, that a hacker can exploit before the developer is aware of it.
The term "zero-day exploits" comes from the fact that security flaws are discovered when hackers are discovered exploiting them and the project does not have enough time to stop the attack process.
The only way to solve zero-day attacks is for software manufacturers to update patches as soon as possible to fix vulnerabilities and minimize losses.
zero click
A zero-click vulnerability is one that requires no user interaction, meaning hackers can still penetrate and exploit the vulnerability without the user having to click a mouse or keyboard.
Due to the dangers of zero-click, NSO Group has sold this exploit to governments to take control of personal phones.
*NSO Group is the maker of Pegasus, a sophisticated cyber weapon capable of extracting sensitive information stored on a device such as messages, location, photos, etc. The weapon is capable of sending malicious code to targeted iPhone devices and uses a zero-click form of attack.
Fulcrum attack
A pivot attack is a method used by hackers to extend their reach, also known as a multi-level attack.
Once a certain part of the system is attacked, hackers will move from the hijacked place to other parts or related parties to gain more permissions within the network, or even completely control the network.
Pivot attacks typically work by compromising part of the network infrastructure, such as a printer or a vulnerable thermostat, while using a scanner to find other connected devices to attack.
Types of Exploitation Attacks in Cryptocurrency
Exploit attacks have become common in the cryptocurrency market and take the following forms:
51% attack: An attack carried out when the attacker has more than 50% of the computing power or destroys the network. They can even profit from double spending.
Flash loan attack: Hackers use flash loans to borrow unsecured assets, and then use the funds to manipulate prices and make profits.
False transactions: Individuals/organizations simultaneously execute buying and selling orders to manipulate the market, creating false information and credit, to achieve the purpose of manipulating the market.
Major Attacks on Cryptocurrency
Ronin Bridge â $625 million
Ronin Bridge is a bridge for asset transfer between the Ronin network and other blockchains. The project was hacked on March 23, 2022, with total losses amounting to $625 million.
The attack on Ronin Bridge was not only due to a security flaw, but also a developer mistake. Previously, Ronin had not revoked the permission of the temporary authorized verifier.
Hackers then exploited the vulnerability to withdraw money from the Ronin network. This attack caused severe losses to many usersâ assets.
Wormhole exploit - $321 million
Wormhole is a cross-chain bridge that allows assets to be transferred between different blockchains. Wormhole was attacked on February 2, 2022, resulting in a total loss of approximately 120,000 WETH, equivalent to $321 million at the time.
An attacker discovered a vulnerability in the Wormhole smart contract and minted 120,000 WETH on the Solana network without providing collateral. This leads to exchange rate imbalances between trading pairs, causing assets held by users to lose real value. The hackers then exchanged these tokens for ETH, making a profit.
Cashio Breach - $52M
Cashio is a stablecoin protocol on Solana, and the stablecoin CASH is pegged to the U.S. dollar 1:1. On February 23, 2022, the project announced that it had been attacked by an exploit, with losses as high as US$52 million.
The reason is that hackers discovered bugs in Cashioâs code and exploited them. Due to the vulnerability, the attacker minted 2 billion CASH without collateral, making it impossible for CASH to maintain a price of $1 like other stablecoins.
Identification signexploit
After mastering some of the common forms of exploit attacks, recognizing the signs is critical to being able to come up with a solution quickly.
In the crypto market, users can gain early recognition by following some security-focused organizations like PeckShield. This is a place where quick reports of potentially hacked projects are posted regularly, as well as attack information so that users can withdraw their funds promptly.
How to avoid exploits
In the cryptocurrency market, not only projects but also users can become victims of exploit attacks. You can rely on the above identification signs while taking measures to prevent attacks.
For users:
Keep your software up to date: Security experts agree that the best and easiest way to protect yourself from exploits is to always use the latest version of your software. Enable automatic software updates on the device (if available).
Back up files: Copy and store important files in a safe place in case they are attacked by ransomware or other malware. To back up to an external drive, disconnect the drive and store it separately from your current computer when not in use.
Use software from trusted vendors: Always use extensions and plug-ins (software that helps integrate with your website) from trusted vendors. If a zero-day attack occurs, the vendor will report the bug and release a patch quickly.
Beware of "strange" links: check the security of the link before visiting, avoid redirects to fake websites, install anti-phishing code (anti-phishing code), and do not provide personal information at will.
Apply 2-factor authentication (2FA) methods (e.g. Google Authenticator, Authy...) to increase the security of your account.
Control activity on the network: practice safe computer usage habits, limit access to public WiFi, and control access (manage the individuals and devices that want to interact with the user's system to prevent malicious activity). Additional scanning, anti-virus and anti-virus software may be applied.
For this project:
Organizational Bug Bounty Programs: These programs are designed to reward white hat hackers for their efforts in finding security vulnerabilities or smart contracts so that projects can promptly correct them. Some projects in the cryptocurrency market, such as Uniswap, regularly host Bug Bounty programs to check for potential vulnerabilities to reduce risks and prevent greater losses in the future.
Monitoring information from security testing units: You can refer to some projects such as PeckShield, Arkham...
The above measures will help prevent the risk of exploit attacks. However, attacks are becoming increasingly sophisticated and users need to remain vigilant and knowledgeable to minimize losses.
