Is 2022 “the year of the crypto hack” as this attempt makes the “Hacktober” list
A group of individuals hacked the official Twitter account of cryptocurrency exchange Gate.io, and proceeded to fraudulently issue Tether [USDT] giveaway scheme. The hacking effort has put over one million users at risk of losing their crypto holdings.
This unknown group of hackers broke into Gate.io’s Twitter account and changed the URL. The website was changed from Gate.io to gąte.com. Additionally, the website appeared to be a real cryptocurrency exchange but was a fraudulent website based on an exchange.
The beauty of the hack attempt
The fraudulent website aggressively promoted a 500,000 USDT giveaway, asking visitors to link their wallets (such as MetaMask) to receive the claims. When a user linked their wallet to this fake website, the hackers gained access to their crypto holdings and were able to drain them.
PeckShieldAlert, a Twitter user was quick to investigate the matter and discovered the phishing site. It also went further and warned users against losing private keys.
#PeckShieldAlert #Phishing Acts as crypto-exchange Gate[.]ios verified Twitter account @gate_io was compromised and has been used to share links to fraudulent USD USD GIVE AWAY.
Gate[.]com is the phishing site.
Thanks @aayushrai11 and @grpoliti for the intelligence pic.twitter.com/cpZ6CgAADm— PeckShieldAlert (@PeckShieldAlert) 22 October 2022
2022: The worst year for crypto hacks…
On 13 October, the analysis company became Chainalysis revealed that October had already become the worst month ever for crypto-related crimes with over $718 million in total losses. Funds were stolen from various decentralized finance (DeFi) protocols during 11 different attacks.
According to the report, this year is expected to surpass 2021 as the most productive year for hacking ever. Through 125 hacks, hackers have earned more than $3 billion. After a $325 million attack on the popular cross-chain service Wormhole, a $625 million attack on Axie Infinity’s Ronin bridge and a $200 million attack on the Nomad bridge also found.
Decentralized apps that are not thoroughly audited provide easy and consistent short-term profit for protocols. Poorly protected protocols are easy pickings for hackers who take advantage of their highly vulnerable locks.
Leveraging bridges, a blockchain-based tool, allows users to trade between different networks. It also enables market manipulation. Rogue traders spend millions of dollars to move thinly traded markets in their favor.
