Customers are being warned by Binance about a campaign that has resulted in “significant financial losses for victims” where malware is being used to modify withdrawal addresses with the intention of stealing cryptocurrency.
The biggest cryptocurrency exchange in the world, the business said that its security team is currently determining which addresses to put on a blacklist and notifying users if they have been impacted by the ‘clipper’ malware. When asked how many people have been impacted and how much money has been stolen, Binance did not reply.
“We have identified a global malware issue that is significantly impacting cryptocurrency transactions by altering withdrawal addresses during the transaction process. This type of malicious software… intercepts data stored in the clipboard, primarily targeting cryptocurrency wallet addresses,” the company said.
“When a user copies and pastes a wallet address to transfer cryptocurrency, the malware replaces the original address with one designated by the attacker.”
Crypto is sent to the attacker’s wallet if the user is unaware of the alteration. The unofficial apps and plugins on Android smartphones are usually the means via which clipper malware is spread, according to Binance, which reported a surge in this type of activity on August 27.
Because of restrictions in their home countries, victims frequently access unofficial websites or unintentionally download these harmful apps while searching for software in other languages. Binance stated that although iOS users should use caution, Android users are also impacted.
According to their statement, Binance has thwarted a number of cryptocurrency thefts and encouraged victims to come forward if they think their bitcoin was taken.
For a considerable amount of time, researchers have alerted us to malware strains that enable hackers to steal cryptocurrency by replacing addresses copied to the victim’s clipboard.
After years of investigations revealed extensive unlawful use of the site, Binance agreed to pay more than $4 billion in settlements with multiple U.S. law enforcement agencies in November.
According to the Treasury Department, ransomware attackers, money launderers, and other criminals, along with organizations like the Islamic State group, Palestinian Islamic Jihad (PIJ), Al-Qaida, and Hamas’ Qassam Brigades, use the site.
In July of last year, Binance said that $73 million in customer assets that had been lost through cyberattacks had been recovered by its security staff. That amount greatly exceeded the $55 million that was recovered in 2023.
The great majority of the $73 million originated from cryptocurrency sites that had been compromised or through hacking. Out of all the frauds, one-fifth are related to cryptocurrency.
According to Binance’s chief security officer, Jimmy Su, the company has worked to increase its partnerships with outside firms in order to enhance its ability to locate and retrieve money that has been stolen.
Cybercriminals made off with almost $1.6 billion in the first half of 2024, up from $857 million in the same time of 2023, according to a warning issued by Chainalysis last month.
Also read: Unveiling the Ethical Imperatives: Navigating the Intersection of AI and Cybersecurity
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