
A cryptocurrency hack leads us down a maze of twisty little passages, Joe Biden’s commercial spyware bill, and Utah gets tough on social media sites.
All this and much much more is discussed in the latest edition of the “Smashing Security” podcast by cybersecurity veterans Graham Cluley and Carole Theriault, joined this week by The Register’s Iain Thomson.
Warning: This podcast may contain nuts, adult themes, and rude language.
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This transcript was generated automatically, probably contains mistakes, and has not been manually verified.
Social Media Shocker with Carole Theriault and Graham Cluley. Hello, hello, and welcome to Smashing Security episode 315. My name's Graham Cluley.
The only thing is it's sometimes a bit too snowy.
It's like if there's a cafeteria along there, check your food.
Now, coming up on today's show, Graham, what do you got?
I don't know, perhaps there is. A couple of weeks ago, hackers managed to steal, I think it's $197 million US worth of cryptocurrency from a lending platform called Euler Finance.
Not that big a deal, $200 million. According to some records, the 26th largest crypto theft ever. There is—
But I mean, at the same time, it's kind of understandable this is happening because, to use the oft-misquoted quote from over here, that's where the money is.
Anyone who had their money hidden away over there, almost 100% of user deposits were found to be under the hacker's control.
And you hear these kind of stories all the time, don't you, of crypto firms losing the money or having suffered a vulnerability or wallets being emptied.
It's every few days there'll be another one of these.
This wasn't the end of the story because a few days after the hack, Euler Finance sent out a message on the old blockchain saying that the hacker could keep 10% of the $200 million that they'd stolen if they would do them the pleasure of returning the rest of the money within 24 hours.
So they said, look, we'll let you keep 10%. Please, please, pretty please.
They can chat to them that way, send them encrypted messages, but they haven't really got a clue who did it, but they're just sort of saying, look, keep some of it, but give the rest back to us.
Otherwise, we're done for.
Maybe in a few weeks' time, we'll have left open that vulnerability.
The thing is, once you've got them to keep, you know, however much it was, $20 million worth, say, you just keep that for yourself.
They may say, look, you know, we'd like to tie a bow around it. We'd like to send you some merch. Could you give us your name and address? So we're doing it for this team.
And so 24 hours later, they publicly announced that they were launching a $1 million reward for information leading to the hacker's arrest.
It wasn't the last you ever heard of this, because last week another hacker, someone who'd been linked to a $500 million theft from another—
He joined the story because the Ronin hacker sent an encoded message along with a couple of bitcoin, ether cryptocurrency, to the Euler Finance hacker, saying to them, hey, look, I've got this message for you.
You can decrypt it using this tool on GitHub, using your private key that controls the stolen Euler funds, right? He said, just to make sure it's— No. Just to make sure it's—
So they saw this message and they checked out the GitHub repository for this encryption tool, and they saw that it contained a security vulnerability.
And the thought was that the Ronin hacker was trying to do a dirty, trying to phish the Euler hacker to get their private key and presumably—
So it's just, I find it incredibly frustrating that they couldn't have sorted their security out in the first place, but still, that's just me.
So there is some weirdness going on in the relationship between the Euler hacker and the Ronin hacker, because there's some evidence that the Euler hacker had previously sent some cryptocurrency to the Ronin hacker.
So we don't really know what's going on here. Are they part of the same gang? Are they trolling us? Are they trying to catch each other out?
Is this some kind of crazy false flag trying to get people looking in the wrong direction? It's mad, it's weird.
And then they were passing this stuff backwards and forwards.
This guy took all the money and then they sent him a message via the chain, as in this case, saying, look, return X amount of the funds and we will pay a bug bounty to you, a significant bug bounty.
That really annoyed an awful lot of people, not only just at the FBI, but also in the security community. It's just, right, can't retroactively say this is a white hat situation.
Eventually, over the course of 15 days, returned all of the funds and Poly Network, coming back to my original point, started a bug bounty program.
This one is offering $100,000 for any hits. So yeah, sort your security out, people, you know, get a bug bounty program in place.
But no, because in another twist in the tale, some of the hackers who claim to be involved in the Euler Finance exploit have recently been vowing to give detailed information about the other Euler hackers to Euler.
So they sent out a message saying, well, look, hey, look, we've got detailed information about the hacker.
"If you still are offering 10% of the bounty, we'll be prepared to give it to you." What, information on Ronin? Oh no, no, information, I understand it's coming back.
And he's posted up an email address and asked Euler to contact them if they want the beans. So everyone's now— some of them are now saying they're uninterested in the bounty.
Others are saying they are interested in the bounty. But there's all this information and people pointing in all different directions as to who this hacker could be.
And you would think that that would be the end of the story. But no, no, no, no, no.
Because now the original Euler hacker has been communicating with Euler Finance saying, "I had no intention of keeping what isn't ours.
I want us to come to an agreement." And Euler Finance said, "Okay, look, let's talk in private about this. You know, you can contact us this way." Get offline. Yeah. Exactly. You know?
And they've now had over $100 million worth of the stolen cryptocurrency returned to them.
And this guy, this hacker who's now calling himself Jacob, he's posting a message saying, "I don't think what I say will help me in any way, but I still want to say it.
I fucked up." He says, "I didn't want to, but I messed with others' money, others' jobs, others' lives. I really fucked up. I'm sorry. I really didn't fucking mean all that.
Forgive me, forgive me, forgive me." So far, as of this recording, $120 million has been returned.
Maybe this is as much of a nuisance for the criminals as it is for the rest of us when we try and move money around. I don't know. But for now, that is the end of the story.
But we know what Musk is like with deadlines and promises.
President Biden issued an executive order on Monday, which goes by the snappy title of Executive Order on Prohibition on Use by the United States Government of Commercial Spyware That Poses Risk to National Security.
I mean, basically the executive order is saying that the US government can't use commercial spyware if it's determined that the spyware is either insecure or it's being run by a company that's hosted in a government which the US considers slightly dodgy, or if it's being used to spy, or if the company's products are being used to spy on US citizens.
Basically also government departments are going to have to draw up a list of where they've used this spyware, who they've used it against, and the rest of it.
But it's the nationality and the sort of, you know, is it being used against US people ones, which I think this one falls down on because that's pretty much every commercial spyware vendor, I would have thought.
I mean, NSO Group might be able to get away with it.
Israel is considered a friendly country over here at the moment, but you know, NSO stuff has also been used to spy on US citizens, so that would presumably take it off the list.
It just seems it's got so many holes running through it.
Also, this was slightly disturbing in that I'd always assumed that the NSA and you know, cyber control and that sort of thing, roll their own.
They don't actually buy from commercial vendors. But it appears not. If they felt the need for this executive order, then someone's got to be using it.
But they are, it is gonna have to be assessed as to which departments are using this on a commercial spyware basis.
These companies keep changing their names on a regular basis. That was first based in the UK, and I think it's now in Italy.
These companies, as I say, they change their name an awful lot. They move around an awful lot.
That would—
Let's say, which— Oh no, I don't know if you're Formula 1 fans, but it was the Saudi Grand Prix last one, and they played the national anthem, and it was amateur hour.
I mean, I don't know who they got to do this, but I mean, it looked sort of the local misfits who didn't know how to play instruments.
I mean, I have absolutely no doubt that they've got their own stuff.
Maybe you could— you're good at computers, could you write us some spyware? 'Cause we need to spy on so-and-so for it. That would work.
You know, it's you're trusting the spyware vendor to say, no, no, no, our code only spies on the people that you choose and doesn't have any backdoors in there to these highly sensitive government servers which we're running off.
But that's just me. I'm sneaky.
But, you know, the courts are usually perfectly happy to pass those warrants out, even if they have to be got after the spying went on.
There is a certain amount of delay that you can build into the process so that intelligence agencies can do the spying and then retroactively ask for permission, and it's usually granted.
It's the usual rules that apply. Keep your computer up to date with security patches. Patch against vulnerabilities. Be careful what you run on your computer. Run security software.
You know, I'm always thinking these giants need to be forced to be more accountable for the actions, right? That's my view.
I do find that the growth of TikTok to be particularly worrying, but still, that's another story.
But his recent actions have afforded him a much different spotlight. And for this story to have context, you kind of need to know a few things about Utah.
One, it's kind of known as the home of Mormons—
And maybe that's why the state has some of the most stringent alcohol laws in the land.
Like, you can't drink until you're 21, no alcohol can be sold later than 1 AM under any circumstances, and beer sold at convenience stores, grocery stores is capped at 4%.
Great skiing there.
And it's an oddish sort of a place because it's very clean, there are very few homeless, but then you do go things like go to the Mormon shopping mall, which is just for Mormon shops.
So had to go in there and look around.
And the bookshop is, I mean, the science fiction section was just basically Orson Scott Card, 'cause he's the only, you know, really well-known Mormon writer or something.
And it was just like, what the hell?
He tweeted recently, more than once actually, that protecting young Utahns from harms of social media is one of our top priorities, exclamation point, he says.
And he writes Utahns, so U-T-A-H-N-S.
So see what you make of this, because back in January, Gov. Cox held a press conference.
And at this conference, he made many statements disparaging social media, things like, we know that social media causes harm. We know that social media can lead to cyberbullying.
He said mental health was taking a beating and that social media platforms know this but are doing nothing.
Gov Cox reportedly said that the situation requires action, and late last week, action was taken in the form of a sweeping social media bill.
And he says these are the first of their kind bills in the United States. That's huge, he says.
So these two laws are collectively known as the Social Media Regulation Act, and they are to take effect on March 1st, 2024, so in less than a year.
The first bill, SB 152, requires social media companies to verify the age of any Utah resident with an account on their services.
It's the first state law in the nation that will prohibit social media service from allowing users under 18 to have the accounts without explicit consent of their parent.
But how do you do that without asking everyone their age?
That's fine. So this is going to demand people probably handing in proof of age, probably driver's licenses, passports.
What do you think about that? Because these are kids, these are people that are not considered adults.
And I'm sure the other three would never dream of doing that unless there was a mega problem.
Surely what the kids will do is they'll have an older brother or sister in their early 20s and they'll say, "Can I borrow your ID?
Because I want to create an Instagram account or whatever it may be."
We haven't worked that one out yet." It seems like one of those—it looks like a PR stunt.
And there's also—I don't know if you're going to go on to this, Carole, but the curfew aspect.
So that's the other one as part of SB 152, is that basically parents have to allow a kid if they want to do any social media between 10:30 PM and 6:30 AM, when Governor Cox thinks you probably should be in bed.
Because of course, nothing bad happens during the day. It's only after 10 o'clock at night. Although I suppose it's more being done for them to get some sleep—is that the thought?
And there's no surprise that privacy advocates are pointing out the identity verification rules take away rights to use the services anonymously because you have to verify every user agent.
I don't know. Do you think we should have a right to be legally anonymous on social media?
But, and we're kind of with Graham on this one, there is a need for anonymity, or even just a desire for anonymity.
Anonymity's important, but also I think with the curfew, how is that going to be enforced?
It'll be down to ISPs and they can't say, right, it's 10:31, let's switch off all the social media and YouTube.
It doesn't feel to me like he's actually going to come up with the answers as to how this will be implemented.
It feels to me like he's saying, look, I'm going to do this first of all, because it's good for my image because the parents who are going to vote for me hopefully will be supportive of what I'm saying here is that social media is corrupting our kids, etc., etc.
You social media companies, you work out how the hell you're going to implement this. And if you can't—
And it gives Utah minors the right to sue social media companies if they believe they've become addicted or otherwise somehow harmed by a social media platform they have an account on.
When it comes to suing, it's just like, whether letting parents sue social media platforms for ostensibly addicting their kids will improve adolescent mental health, or may these serve as a college funding option, remains to be seen.
That sort of builds into the fundamental essence of the platforms.
And they're not alone, right? This is not the only state.
Utah is the first one to pass it, but Arkansas legislation is looking to introduce a similar bill that would require social media networks to verify users' ages and obtain explicit parental consent for people under 18.
There's one in Texas that's even more stringent. It would ban social media accounts for minors, period.
Shouldn't we have some more policing regarding the rest of us? Why aren't we all being protected?
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Could be a funny story, a book that they've read, a TV show, a movie, a record, a podcast, a website, or an app, whatever they wish.
It doesn't have to be security related necessarily.
Now I'm not going back as far in time this time. I'm going back to last year.
One of the most expensive Indian films ever made, according to The Guardian, one of the best films from any country, which was produced last year.
So it's in their top 10 films of the year.
Once again, the British are the enemy, quite right too. Two Indian men on opposite sides of the political divide. One is working for British forces as a cop.
The other one is trying to rescue a girl who's been kidnapped from his local village. And it is bonkers. It is as action-packed as any Hollywood movie you've seen in years.
I don't want to give it away, because this movie lasts 3 hours.
And the guy on top has got the machine guns and is shooting people left, right and center as he's being carried along on someone's piggyback.
And they're doing jumps and they're climbing up ladders again on piggyback from each other. It is nuts.
Now, there are a couple of grisly scenes which I think make it— there's a particularly unpleasant scene, not for kids, I'd say, which is a shame because otherwise this would have been great for kids.
RRR gets my pick of the week. Great movie. And it's on Netflix. Did I say that? It's on Netflix. You can watch it for free. Watch it tonight. Go on. You'll enjoy it.
Iain, what's your pick of the week?
Subtitle: Hilarious True Stories of House-Sharing Hell. And Terry Pratchett thought it was his book of the year when it came out. And he has a lovely quote on the back.
You'll read it with horrified amusement. And if you've ever shared a flat, the occasional wince of recollection.
Now, in this case, this is a guy who basically spent 10 years going from house share to house share in Northern Australia.
And some of the stories are just— I've stayed in some really grotty houses, but I have never seen a board put up in the bathroom with the longest pubic hair pulled out of the shower drain and a competition to see who could get the longest one.
You know, it's that kind of descent into madness.
One thing I'd forgotten about, apparently the Australians call weed or jazz cigarettes or whatever you want to call it, they call them cones.
'Cause they roll a big cone and then just, yeah, it's a very— an awful lot of drug-fuelled mayhem.
The title itself comes from a housemate who was crashing with them for a couple of days and went out for a falafel, came back, injected heroin, and died on the floor.
And actually I love root canal because I was in a lot of pain until I had the very expensive procedure, which has allowed me to talk today.
But otherwise, however, I decided to instead select a single episode of a new series called Swarm, which I found streaming on Amazon Prime. Now here's the blurb.
Swarm is an American satirical psychological horror thriller television series created by Janine Nabers and Donald Glover. And all I can say is holy freaking crapola.
The end of the first episode is like capital D dark. And unpredictable and kind of nasty. So, it's played by Dominique Fishback. She plays Dre, and you cannot take your eyes off her.
She's an unusual, gripping lead. I loved her, loved her, loved her. And she's this young, aimless girl, gaga for a pop star. When I say gaga, I mean she's totally obsessed.
And this obsession leads her to take a dark turn, and then another darker turn, and then one that she'll never recover from. And that's just episode 1!
If you ever get the chance, see Night of the Lepus, which is about rabbits hiding in an abandoned radioactive nuclear waste dump that suddenly turn giant and start biting people's heads off.
It's just amazing. All I can assume is that in the pitch meeting for the film, everyone was doing a lot of cocaine.
What's the best way for folks to find out what you're up to?
Well, they're taking away my blue verified tag on April 1st. So I'm just kind of like, should I really still be supporting this site? I don't know.
It's all going a bit Pete Tong, to be honest.
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For episode show notes, sponsorship information, guest list, and the entire back catalog of more than 314 episodes, check out smashingsecurity.com.
Hosts:
Graham Cluley:
Carole Theriault:
Guest:
Iain Thomson – @iainthomson
Episode links:
- Tweet by Euler Finance confirming security breach – Twitter.
- Euler Finance to Offer $1M Reward as It Reels From Nearly $200M Exploit – Coindesk.
- Hackers stole over $500m in cryptocurrency in record-making heist, Ronin says – The Guardian.
- Hacker Behind $200M Euler Attack Apologizes, Returns Millions in Ether, Dai to Protocol – Coindesk.
- President Biden kind of mostly bans commercial spyware from US govt – The Register.
- Utah Law Could Curb Use of TikTok and Instagram by Children and Teens – New York Times.
- Utah’s social media for kids law could be coming to a state near you – Vox.
- Utah Governor Spencer Cox signs a landmark social media bill – YouTube.
- RRR – Netflix.
- RRR trailer – YouTube.
- RRR Naatu Naatu dance scene – YouTube.
- Best films of 2022 in the UK, No 7: RRR – The Guardian.
- He Died with a Felafel in His Hand – Wikipedia.
- Swarm – Amazon Prime.
- Night of the Lepus – Wikipedia.
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Thank you! Thank you! Thank you!!
My mom went to the hospital today and has her 1st treatment of radiation therapy for her liver cancer tomorrow and I have been beside myself worrying! I just finished listening to your podcast, episodes 315 and 314 and laughed and laughed and laughed all the while, learning new things!! I have had this respite from languishing inside my head on things beyond my control because of you and your wonderful wacky humours on your amazing podcasts!! You have a Canadian listener for as long as you will produce content!! <3
I'm really sorry to hear your mum has been poorly, but I'm pleased to hear that the podcast has been able to put a smile on your face.
All the best to your mum from everyone at Smashing Security.