AI has since replaced “cryptocurrency” and “blockchain” as the cybersecurity buzzwords everyone wants to hear. 

We're not getting as many headlines about cryptocurrency miners, the security risks or promises of the blockchain, or non-fungible tokens being referenced on “Saturday Night Live.” 

A report in March found that 72% of cryptocurrency projects had died since 2020, with crypto trading platform FTX’s downfall taking out many of them in one fell swoop. This, in turn, means there are fewer instances of cryptocurrency mining malware being deployed in the wild — if cryptocurrencies aren’t as valuable, the return on investment for adversaries just isn’t there.  

But that still hasn’t stopped bad actors from using the cryptocurrency and blockchain spaces to carry out other types of scams that have cost consumers millions of dollars, as a few recent incidents highlight. 

In place of major cryptocurrencies, many bad faith actors are creating “memecoins,” which are cryptocurrencies usually themed around a particular internet meme or character meant to quickly generate hype. The most famous example, Dogecoin, themed after the “Doge” meme, was 72% below its peak value as of Wednesday. 

At one point, Dogecoin was at least worth something, which is more than can be said for most other memecoins launched today. Cryptocurrency news site CoinTelegraph found that one in six newly launched meme-themed cryptocurrencies are outright scams, primarily centered around getting users to spend real-world money to invest in currency before the creator just takes off with their funds. 

And 90% of the memecoins they studied contained at least one security vulnerability that could leave users open to abuse or theft. 

Singer Jason Derulo is even facing allegations that his “JASON” memecoin on the Solana blockchain platform is a scam after it hit a market cap of $5 million on June 23, and then the value fell almost immediately later that day. Separately, someone hacked rapper 50 Cent’s Twitter account to promote the “$GUINT” memecoin. Upon regaining control of his account, 50 Cent said that whoever committed the scam made $3 million in 30 minutes, with consumers putting money into the memecoin thinking it was legitimate, before the creator took off with the money almost immediately, leaving users unable to access their funds. 

Another popular scam still going around in this space is called the “rug pull,” where a cryptocurrency or NFT developer starts to hype up a new project to attract investor funds, only to completely shut down the project days or weeks later, taking investors’ assets with them. 

Blockfence, a Web3 security firm, found a collection of these scammers earlier this year, claiming they had stolen the equivalent of $32 million from more than 42,000 people across multiple rug pull scams. Unmoderated social media platforms have been rife for abuse for these types of scams, with semi-anonymous users with large followings finding it fairly easy to get a large amount of interest in whatever their latest “project” is in a short amount of time.  

The last example, I’m still not sure if it’s a scam yet. A new video game called “Banana” recently blew up on the Steam online store, even though it’s barely a video game. Users can open the game at fixed intervals and click a button to receive a “banana” in their Steam account. Some of these bananas, usually different artists' renderings of an image of the fruit, are extraordinarily rare and can be re-sold on Steam’s internal marketplace for real-world money. 

Some of these bananas have sold for more than $1,000, but most of the basic ones are only worth a few cents. To me, this looks and smells like an NFT. A former cryptocurrency scammer was once even connected to the project before the creators parted ways with him.  

I have no way of knowing any of this for sure, but there doesn’t seem to be any safeguards in place to ensure the creators of the game could rig it for themselves and give only themselves or close friends copies of the rarer items. And I’m not fully sure what the endgame is for the developers, since “Banana” is free to download and “play.”  

Thankfully, I’m not getting as many questions as I used to about NFTs and “the crypto” from extended family members. But just because it’s disappeared from mainstream consciousness doesn’t mean scammers have forgotten about this space, too. 

The one big thing 

Cisco Talos recently discovered an ongoing campaign from SneakyChef, a newly discovered threat actor using SugarGh0st malware. SneakyChef uses lures that are scanned documents of government agencies, most of which are related to various countries’ Ministries of Foreign Affairs or embassies. Talos recently revealed SneakyChef’s continuing campaign targeting government agencies across several countries in EMEA and Asia, delivering the SugarGh0st malware, however, we found a new malware we dubbed “SpiceRAT” was also delivered in this campaign.   

Why do I care? 

SneakyChef has already targeted more than a dozen government ministries across the Eastern Hemisphere. Based on the lure documents Talos discovered the actor using, like targets for the campaign could include the Ministries of Foreign Affairs from Angola, India, Kazakhstan, Latvia, and Turkmenistan and the Saudi Arabian embassy in Abu Dhabi. This actor doesn’t seem to be deterred by much, either, as their actions have largely continued in the same manner since Talos first disclosed the existence of SugarGh0st several years ago, using the same TTPs and C2.  

So now what? 

Talos could not find any of the lure documents used in the wild, so they were very likely stolen through espionage and slightly modified. This could make it more difficult to spot lure documents and spam emails, so users should pay closer attention to the sender’s email address if they are suspicious of any messages. We also released OSQueries, Snort rules and ClamAV signatures that can detect and block SneakyChef’s activities and the SpiceRAT malware.  

Top security headlines of the week 

A cyber attack that is stalling communication and sales at car dealerships around the U.S. is unlikely to be restored by the end of the month. CDK Global, the victim of the campaign, reportedly told customers that they should prepare alternative methods for preparing month-end financial statements. Car dealerships use CDK to conduct sales, process financial information, and look up vehicles’ warranties and recalls. The outage is affecting more than 60 percent of Audi dealerships in the U.S. and about half of Volkswagen’s locations, forcing them to switch to pen-and-paper transactions and contracts or to drop sales altogether. One sales manager of an affected dealership told CNN it could take “months to correct, if not years,” the financial fallout of the outage. CDK first disclosed two back-to-back cyber attacks last week, both of which occurred on June 19. There are already two class action lawsuits against CDK, with plaintiffs alleging that the breach may have exposed customers’ and employees’ names, addresses, social security numbers and other financial information. (Reuters, CNN) 

The list of victims resulting from a data breach at cloud storage provider Snowflake continues to grow. Australian ticket sales platform Tiketek informed customers this week of a potential data breach, though it was not immediately clear if it was connected to Snowflake. Retailer Advance Auto Parts also said this week that said employee and applicant data — including social security numbers and other government identification information — were stolen during the breach. Clothing chain Neiman Marcus also filed regulatory documents in Maine and Vermont disclosing that the personal information of more than 64,000 people was potentially accessed because of the Snowflake breach. This information could include names, contact information, dates of birth and gift card numbers for the retailer. Security researchers at Mandiant first estimated that as many as 165 Snowflake customers could be affected. Snowflake says that internal investigations found that the breach was not caused by “a vulnerability, misconfiguration, or breach of Snowflake’s platform." (The Register, The Record by Recorded Future) 

Adversaries quickly started exploiting another vulnerability in the MOVEit file transfer software, just hours after it was disclosed. The high-severity vulnerability, CVE-2024-5806, could allow an attacker to authenticate to the file-transfer platform as any valid user with the accompanying privileges. The vulnerability exists because of an improper authentication issue in MOVEit’s SFTP module, which Progress, the creator of the software, says “can lead to authentication bypass in limited scenarios.” A different vulnerability in MOVEit was targeted in a rash of Clop ransomware attacks that eventually affected more than 160 victims, including the state of Maine, the University of California Los Angeles, and British Airways. Managed file transfer software (MFT) like MOVEit are popular targets for threat actors because they contain large amounts of sensitive information, which adversaries will steal and then use to extort victims. The Shadowserver Foundation posted on Twitter on Tuesday that they began seeing exploitation attempts shortly after details emerged about CVE-2024-5806. (Dark Reading, SecurityWeek) 

Can’t get enough Talos? 

Upcoming events where you can find Talos 

BlackHat USA (Aug. 3 – 8) 

Las Vegas, Nevada 

Defcon (Aug. 8 – 11) 

Las Vegas, Nevada 

BSides Krakow (Sept. 14)  

Krakow, Poland 

Most prevalent malware files from Talos telemetry over the past week 

SHA 256: 9be2103d3418d266de57143c2164b31c27dfa73c22e42137f3fe63a21f793202 
MD5: e4acf0e303e9f1371f029e013f902262 
Typical Filename: FileZilla_3.67.0_win64_sponsored2-setup.exe 
Claimed Product: FileZilla 
Detection Name: W32.Application.27hg.1201 

SHA 256: a31f222fc283227f5e7988d1ad9c0aecd66d58bb7b4d8518ae23e110308dbf91
MD5: 7bdbd180c081fa63ca94f9c22c457376
Typical Filename: c0dwjdi6a.dll
Claimed Product: N/A
Detection Name: Trojan.GenericKD.33515991

SHA 256: a024a18e27707738adcd7b5a740c5a93534b4b8c9d3b947f6d85740af19d17d0 
MD5: b4440eea7367c3fb04a89225df4022a6 
Typical Filename: Pdfixers.exe 
Claimed Product: Pdfixers 
Detection Name: W32.Superfluss:PUPgenPUP.27gq.1201 

SHA 256: 484c74d529eb1551fc2ddfe3c821a7a87113ce927cf22d79241030c2b4a4aa74
MD5: dc30cfd21bbb742c10e3621d5b506780
Typical Filename: KMS-R@1nHook.exe
Claimed Product: N/A
Detection Name: W32.File.MalParent

SHA 256: 9be2103d3418d266de57143c2164b31c27dfa73c22e42137f3fe63a21f793202
MD5: e4acf0e303e9f1371f029e013f902262
Typical Filename: FileZilla_3.67.0_win64_sponsored2-setup.exe
Claimed Product: FileZilla
Detection Name: W32.Application.27hg.1201