FBI Alerts of Rise in Attacks Targeting DeFi Platforms

The FBI is alerting of an increase in cryptocurrency theft attacks on decentralised finance (DeFi) platforms.

According to the agency, criminals are exploiting the increased interest in cryptocurrency, as well as the complex functionality and open-source nature of DeFi platforms, to carry out nefarious activities.

According to the FBI, cybercriminals are stealing virtual currency and causing investors to lose money by utilising security flaws in the smart contracts that govern DeFi platforms. Smart contracts, defined as self-executing contracts containing the terms of an agreement between a buyer and a seller within their lines of code, are present throughout the decentralised blockchain network.

DeFi platforms accounted for roughly 97% of the $1.3 billion in cryptocurrencies stolen by cybercriminals between January and March 2022, an increase from 72% in 2021 and 30% in 2020.

According to the FBI, cybercriminals have also initiated flash loans to trigger an exploit in the DeFi platform’s smart contracts (resulting in $3 million in cryptocurrency losses), exploited a signature verification bug in a DeFi platform’s token bridge (resulting in $3 million in cryptocurrency losses), and tampered cryptocurrency price pairs (to steal $35 million in cryptocurrency).

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This article has been indexed from CySecurity News – Latest Information Security and Hacking Incidents