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Sophos Lifts the Lid Off Liquidity Mining CryptoCrime

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Sophos has released threat research about nascent cybercrime in the article, “Liquidity Mining Scams Add Another Layer to Cryptocurrency Crime.” The article is the first in a series lifting the lid off scammers who are taking advantage of the hype about cryptocurrency trading and the vast sums of digital wealth users have made (and lost) in crypto markets to lure in and swindle would-be investors.

In the investigative article, Sophos explains how the complexity of cryptocurrency and decentralized finance (DeFi), the foundations of liquidity mining, create the ideal environment for criminals to easily camouflage and carry out their malicious intentions. Scammers are not shy when it comes to targeting their victims; they proactively spam recipients via Direct Message on Twitter, What’s App, Telegram, and other social networking platforms, and innocuously chat about liquidity mining to put targets at ease. From there, scammers escalate the swindle.

“Interactions from a single Direct Message on Twitter led to Sophos’ investigation that uncovered several liquidity mining fraud rings. Liquidity mining is a form of cryptocurrency-based investment in DeFi that even when ‘legitimate’ is both dubious and complicated,” said Sean Gallagher, a senior threat researcher at Sophos. “The strategies behind the investments themselves are complex, and there’s no regulation beyond the ‘smart contract’ code embedded in the DeFi network’s blockchain — code that many people can’t easily interpret even when it’s publicly published. There’s also a shortage of reliable information for new investors on how these networks work. Despite these risks, liquidity mining is the latest cryptocurrency investment craze, but because of these factors, it’s also the perfect platform for scammers to leverage. Unfortunately, we expect liquidity mining CryptoCrime to continue; it hasn’t peaked. Hundreds of millions of dollars are at stake.”

How Liquidity Mining Works
Legitimate liquidity mining makes it possible for DeFi networks to automatically process trades using digital currency such as Ethereum, the preferred cryptocurrency for liquidity mining. Smart contracts built into the DeFi network must rapidly determine the relative value of the currencies being exchanged and execute the trade. Since there is no centralized pool of cryptocurrency for these distributed exchanges to pull from to complete trades, they rely on crowdsourcing to provide the pool of cryptocurrency capital required to complete a trade — a liquidity pool.

To create the liquidity pool — which handles transactions between a single pair of cryptocurrencies, such as Ethereum and Tether — investors commit equal values of both cryptocurrencies to the pool. In exchange for lending that cryptocurrency to the pool, the investors get a reward based on a percentage of the trading fees associated with the DeFi protocol.

Investors also receive liquidity pool tokens (LP tokens) — a representation of their share of the pool. These tokens can be “staked,” or linked back to the exchange, further committing the original contribution, and earning the investor dividends in the form of another cryptocurrency associated with the DeFi project. The value of these reward tokens can vary widely.

“The mechanics of liquidity mining in its legitimate form provide the perfect cover for old-fashioned swindles re-minted for the cryptocurrency age,” said Gallagher. “Criminal liquidity mining schemes, like traditional Ponzi schemes, give targets the illusion that they can pull their money out at any time — even allowing them to make withdrawals early on. But scammers will continuously urge targets to keep investing and to ‘invest big’ by obscuring what’s really happening with fake applications, phony profit reports, and the promise of lucrative payouts. In reality, scammers have gained control of their targets’ cryptocurrency wallets and are withdrawing currency whenever they want. Gradually, scammers empty the wallets, all while continuing to assure targets that everything is fine, and finally cut off communications.”

Cyber Security

Sophos MDR Protects 26,000 Customers Globally with Latest Innovations

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Sophos has announced that its Sophos Managed Detection and Response (MDR) service has reached a major milestone, now protecting more than 26,000 organizations globally, growing its customer base by 37% in 2024. This achievement highlights the increasing demand for Sophos’ proactive, expert-led security solutions, which help organizations of all sizes stay protected 24/7 against increasingly sophisticated cyber threats, including the most advanced ransomware, business email compromise (BEC) and phishing attacks.

Sophos MDR offers a comprehensive suite of capabilities that go beyond standard threat containment to include full-scale incident response, such as root cause analysis, the removal of malicious tools or artefacts used by attackers, and investigations across customers’ environments to ensure adversaries are fully ejected to prevent another attack. What further differentiates Sophos is that these incident response services are included with Sophos MDR on an unlimited basis, meaning customers are not additionally charged and there is no limit on the number of incident response hours. Sophos MDR Complete also includes a breach protection warranty covering up to $1 million in incident response expenses. Sophos provides flexibility for how customers can work with the MDR analysts, including the ability to pre-authorize them to contain an active threat.

Sophos has made significant investments into its MDR offering with increased analyst capacity, AI-assisted workflows, new features and expanded integrations to help deliver the best possible outcomes through improved protection, detection and investigation of threats. Sophos has added the following new features:

  1. Proof of Value: New Sophos MDR service insights to explain the MDR team’s actions including highlighting the human hours spent threat hunting and creating and tuning detections. High-value dashboard enhancements include details of MITRE ATT&CK tactics uncovered in proactive threat hunts conducted by Sophos’ MDR team, MDR analyst coverage, case investigation summaries and an account health check status.
  2. Enhanced Security for Microsoft Customers: New Sophos-proprietary detections for Microsoft Office 365 identify threats including business email compromise and adversary in the middle account takeover attacks, independent of the customer’s Microsoft license level.
  3. Expanded Compatibility with Third Parties: This expanded ecosystem of turnkey integrations with third-party cybersecurity and IT tools includes a new Backup and Recovery integration category.
  4. Proactive Vulnerability Mitigation: Sophos Managed Risk powered by Tenable provides attack surface vulnerability management as a new managed service option for Sophos MDR customers.
  5. Efficiency and Automation: Sophos MDR has added AI-powered workflows to streamline operational processes and drive better security outcomes for our customers. This innovation delivers a reduced mean time to respond (MTTR) through more efficient triage, while also ensuring that all legitimate threats are rapidly investigated. This enables analysts to concentrate on other tasks such as threat hunting, account health monitoring and detection engineering.

“Attackers are continuously advancing their tactics to outmanoeuvre traditional security defences,” said Rob Harrison, senior vice president of product management at Sophos. “Our customers rely on Sophos MDR to help their organizations tackle today’s threats 24/7 with full-scale incident response to remove active adversaries and conduct root cause analysis to identify the underlying issues that led to an incident. We’re consistently evolving our solutions with new offerings and integrations, just like attackers are constantly evolving their tactics, so customers can disrupt threats before they escalate into destructive attacks.”

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Cyber Security

Group-IB Joins Cybercrime Atlas at WEF to Combat Global Cybercrime

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Group-IB has announced today that it has joined the Cybercrime Atlas—an initiative hosted at the World Economic Forum—to contribute to the research of the evolving landscape of cybercrime, support the disruption of cybercriminal infrastructure and operations, and to enhance collaborations between local and international stakeholders to enhance cybersecurity globally.

The Cybercrime Atlas, hosted at the World Economic Forum’s Centre for Cybersecurity, leverages open-source research to generate actionable insights into the cybercriminal ecosystem. Its community comprises organizations pivotal in identifying and dismantling cybercriminal activities. This collaborative initiative seeks to build a global, action-focused repository of cybercrime intelligence, promoting cooperation among investigators, law enforcement, financial institutions, and businesses at both national and international levels. Group-IB’s analysts have already begun contributing to Cybercrime Mapping, and Cybercrime Investigation Working Groups.

“Joining the Cybercrime Atlas initiative is not just an opportunity – it’s a responsibility. In a world where cyber threats transcend borders, collaboration is our most powerful defence. By uniting with the Cybercrime Atlas community and other key stakeholders, we connect expertise and critical intelligence, creating a united front that can disrupt criminal networks and make the digital world a safer place for everyone,” said Dmitry Volkov, CEO, Group-IB.

“The Cybercrime Atlas is a collaborative research initiative by leading companies and experts, facilitated by the World Economic Forum, to map the cybercrime landscape. The insights generated are promoting opportunities for greater cooperation between the private sector and law enforcement to address cybercrime,” said Tal Goldstein, Head of Strategy and Policy, World Economic Forum’s Centre for Cybersecurity.

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Cyber Security

ESET Research Discovers UEFI Secure Boot Bypass Vulnerability

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ESET researchers have discovered a vulnerability, affecting the majority of UEFI-based systems, that allows actors to bypass UEFI Secure Boot. This vulnerability, assigned CVE-2024-7344, was found in a UEFI application signed by Microsoft’s “Microsoft Corporation UEFI CA 2011” third-party UEFI certificate. The exploitation of this vulnerability can lead to the execution of untrusted code during system boot, enabling potential attackers to easily deploy malicious UEFI bootkits (such as Bootkitty or BlackLotus) even on systems with UEFI Secure Boot enabled, regardless of the operating system installed.

ESET reported the findings to the CERT Coordination Center (CERT/CC) in June 2024, which successfully contacted the affected vendors. The issue has now been fixed in affected products, and the old, vulnerable binaries were revoked by Microsoft in the January 14, 2025, Patch Tuesday update.

The affected UEFI application is part of several real-time system recovery software suites developed by Howyar Technologies Inc., Greenware Technologies, Radix Technologies Ltd., SANFONG Inc., Wasay Software Technology Inc., Computer Education System Inc., and Signal Computer GmbH.

“The number of UEFI vulnerabilities discovered in recent years and the failures in patching them or revoking vulnerable binaries within a reasonable time window shows that even such an essential feature as UEFI Secure Boot should not be considered an impenetrable barrier,” says ESET researcher Martin Smolár, who discovered the vulnerability. “However, what concerns us the most concerning the vulnerability is not the time it took to fix and revoke the binary, which was quite good compared to similar cases, but the fact that this isn’t the first time that such an unsafe signed UEFI binary has been discovered. This raises questions of how common the use of such unsafe techniques is among third-party UEFI software vendors, and how many other similar obscure, but signed, bootloaders there might be out there.”

Exploitation of this vulnerability is not limited to systems with the affected recovery software installed, as attackers can bring their copy of the vulnerable binary to any UEFI system with the Microsoft third-party UEFI certificate enrolled. Also, elevated privileges are required to deploy the vulnerable and malicious files to the EFI system partition (local administrator on Windows; root on Linux). The vulnerability is caused by the use of a custom PE loader instead of using the standard and secure UEFI functions LoadImage and StartImage. All UEFI systems with Microsoft third-party UEFI signing enabled are affected (Windows 11 Secured-core PCs should have this option disabled by default).

The vulnerability can be mitigated by applying the latest UEFI revocations from Microsoft. Windows systems should be updated automatically. Microsoft’s advisory for the CVE-2024-7344 vulnerability can be found here. For Linux systems, updates should be available through the Linux Vendor Firmware Service.

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