
In episode 406 of the “Smashing Security” podcast, we explore how the cryptocurrency exchange Bybit has been hacked to the jaw-dropping tune of $1.5 billion, and we look at what is being done to better defend women and girls’ safety online.
All this and more is discussed in the latest edition of the “Smashing Security” podcast by cybersecurity veterans Graham Cluley and Carole Theriault.
Warning: This podcast may contain nuts, adult themes, and rude language.
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I think we should report it to somebody." Smashing Security, Episode 406: History's Biggest Heist Just Happened, and Online Abuse. With Carole Theriault and Graham Cluley.
Hello, hello, and welcome to Smashing Security episode 406. My name's Graham Cluley.
Great to hand out some Smashing Security stickers to the folks there. So thanks to everyone who came along to that.
It's their support that helps us give you this show for free. Now coming up on today's show, Graham, what do you got?
There's a lot of it out there, isn't there?
In 1963, for instance, a gang of men, Ronnie Biggs amongst them, stopped a Royal Mail train travelling from Glasgow to London. Escaped with over £2.6 million.
In today's money, that's around £57 million. They made movies about it. The robbers became celebrities.
In 1987, so 24 years later, thieves stole £60 million worth of cash and jewels and bonds in the Knightsbridge Security Deposit robbery. Again, chicken feed, £60 million, big deal.
Not worth putting a stocking over your head. In 2003, a further 16 years later, look at me doing the maths in real time. A group of thieves called the School of Turin.
Now I dunno if they set themselves up as some sort of academic establishment or tried to disguise themselves as a university.
Anyway, this gang, they called themselves the School of Turin. They struck in Antwerp and they stole over $100 million worth of diamonds, gold, and silver.
And that was a high-profile heist because they defeated infrared heat sensors, seismic sensors. Even if a drop of sweat fell on the floor, it could have been picked up.
A Doppler radar they had protecting these things. It was pretty high-tech stuff.
They didn't even bother setting a foot in the place that they were robbing because what they did was they hacked a cryptocurrency exchange to the tune of $1.4 billion.
And if you don't live in the world of cryptocurrency, you may not have heard of Bybit, B-Y-B-I-T. But they are one of the world's largest cryptocurrency exchanges.
And this theft of roundabout, actually, is $1.5 billion.
Doesn't just represent the largest cryptocurrency heist in history, but it's also, it seems, the largest robbery of any kind in history. So take that, Great Train Robbers.
Take that, Belgian School of Turin, or whatever you were stealing the diamonds. Happened last Friday, February 21st.
And I'm going to tell you the story of what happened because we already know some of the details.
And what they do is they split their cryptocurrency holdings between two kinds of wallet.
That's stored in a hot wallet, has one big benefit and one big drawback. The big benefit is that because they're connected to the internet, they're faster and easier to access.
It's offline, it may be on a USB drive or a hard drive. It's stored in a secure undisclosed location. It's air-gapped, it's not connected to anything.
And that makes it nearly impossible to remotely hack.
They'll have a bank account where they tap, tap away, you know, to make all kinds of day-to-day payments.
And another one that's kind of more secure and, you know, with more, go through bells and whistles to get it done.
Hasn't got very much cryptocurrency on it, unfortunately, but it's just a small little USB drive which connects to my computer.
If I do want to access my wallet, I have to plug it in to use it and to access it. So you can do this as an individual as well.
In fact, I would recommend it rather than storing all of your millions of cryptocurrency in a cryptocurrency exchange, which may get hacked or in a software wallet on your mobile phone, which could be more at risk.
Though, to be honest, the cold wallet costs much more than the cryptocurrency is containing at the moment.
So it's on a USB drive, it's on a hard drive, it's air-gapped, shouldn't be possible to hack.
And most of a cryptocurrency exchange's assets would be stored in a cold wallet like that.
But every now and then, a cryptocurrency exchange will want to move some funds from its cold wallet to its warm wallet, right?
Or if it gets an awful lot of new cryptocurrency coming in, which is stored on its warm wallet, it may say, well, we don't need all of that in the warm wallet anymore.
Let's move some of that safely back to the cold wallet.
Now, obviously, you want to be really careful when you make a transfer like that.
You don't want anyone who doesn't have proper authority to move the funds, and you want to make sure that they're going from your cold wallet into your warm wallet, not to anyone else's account, right?
You want to make sure any money you take out of the cold wallet really is going into the right warm wallet, the one which is your possession.
I think that the cryptocurrency exchange would say, surprisingly, this guy who only had £7.24 now has £107.24 instead. What's he been up to?
How's he managed to make all this money?
So that's like having 3 different people holding 3 different keys to unlock a bank vault. No single person can open the vault. They all have to work together in coordination.
And hopefully someone would say, I don't think we should be doing this.
Or Carole would say, I don't think it's right that we've received $100 million in the Smashing Security cryptocurrency account. I think we should report it to somebody.
So unfortunately, it appears that hackers broke into Bybit's network, their internal infrastructure at their HQ in Singapore, identified who had signing rights to move the company's funds to fill up the hot wallet, and then infected their devices with malware.
So the user interface, it showed a different legitimate cryptocurrency transaction than the one which multiple staff were unwittingly actually signing.
So it looked all legitimate to the eye. They would've done their checks, they'd have opened the software, say, yep, that's fine, I'm gonna sign off on that.
That is the correct wallet which this money's going to. But actually behind the scenes, the software was actually sending it somewhere else.
And so they did the signing, they weren't suspicious, and it was only a couple of hours later when they realized what they'd done.
And that would potentially buy you someone on the inside or get you some inside information with you, that kind of money.
And sometimes changing the type of cryptocurrency can help with that as well. Now, Ben Cho, the CEO of Bybit, he's reassured users that their funds are safe.
You'd think they weren't, but he says that they were 1-to-1 backed with Bybit's reserves. So Bybit has enough in reserve that it says Don't worry about it, we've got it covered.
We can give you all of your money back.
Specifically, a team within the Lazarus Group who are believed to have stolen about $70 million, which seems like small fry now, from another Singaporean cryptocurrency exchange in January.
So some people would say, oh, what does it really matter? Because Bybit says, well, your money's covered. You're not going to lose anything because of this.
You know, we're going to make sure you haven't lost out. But this money is going to North Korea.
And according to the United Nations, money which is stolen by the Lazarus Group ends up in North Korea's nuclear and missile testing program.
And $1.5 billion will be very welcoming received, I suspect, by the powers that be in North Korea to fund that.
It's actually the biggest bounty in the history of the world. You can earn $140 million if you can help this.
So Carole, if you've got a theory, go there with your magnifying glass, dust for fingerprints.
I primarily know them as the place to complain if, you know, I don't like something on TV or radio. Okay, have you ever complained to Ofcom about something you've seen on telly?
Earlier this month, just before Valentine's Day, the watchdog received more than 1,000 complaints regarding a GB News presenter saying something about the LGBTQ community and pedophiles and some shit nonsense.
And Morgan cast doubt on the claims that she'd made, including that she'd experienced suicidal thoughts while still a senior member of the royal family.
That's obviously not in effect yet, but the Online Safety Act is designed to make companies that operate a wide range of online services, make them legally responsible for keeping people, especially children, safe online.
And the internet regulator are to push tech firms to run better age checks. Remember, I think we talked about this on the show.
Filter and downrank content, you know, that's not appropriate, and apply around 40 other steps to assess harmful content around subjects suicide, self-harm, pornography, to reduce under-18s' access to it.
They're claiming they don't seem to care so much about policing the content, do they?
The latest set of recommendations from Ofcom has just been shared, and in it, Ofcom offer guidance on the legal obligations to protect women and girls from online threats harassment, bullying, misogyny, and intimate image abuse.
Yeah, and the government has said that protecting women and girls is a priority with specific abuses.
So things intimate images, sharing those without consent, or using AI tools to create deepfake pornography that targets individuals being explicitly set out in the law as enforcement priorities.
So they're taking this seriously. The language is all, to me, sounds good. And let's be honest here, we all know that the abuse of women and girls online is a huge problem online.
Just last week, as part of Girlguiding research, a charity reported on a survey of 2,000 young people between the ages of 13 and 18 about their online experiences.
And a third of those said that the online harms and misogynistic content made them feel unsafe and/or unable to tell a parent or carer.
I mean, I wouldn't want my young nephews or my friend's sons to access violent pornographic content online. You have a son. What do you — you have thoughts on that?
That would be utterly horrible.
So this is the good industry practices that Ofcom are advocating, and I want to know if you think they're doable, and if you think they'll help.
So your phone, for instance, wouldn't automatically track your location, which obviously you want if you're using a Maps app or if you're trying to find your laptop, which you've left lying around somewhere.
One of the things which the advertisers will want to do is target people in particular places. So yes, of course they are. If you log into Facebook, it knows where you are.
Designing in-user prompts that are intended to make posters think twice before posting abusive content. What I understand that to be is a pop-up.
So yeah, there is the danger of false alarms, I would say.
I don't think there's any harm in something popping up and saying, "Do you really want to do that?" The truth is people are vile on the internet and will say things which they would never say face to face.
If you have something that you think is abusive, you should be able to report it easily and quickly.
But get this, TechCrunch asked Ofcom if they knew of any firms currently meeting the guideline standards, and they suggested that they had not, adding there's still a lot of work to do across the industry.
Traditional security tools are completely broken when it comes to managing today's massive log volumes.
Companies are paying millions per year just to keep up, and they're still falling behind. That's why everyone's moving their logs to data lakes. It's just more cost efficient.
But there's a catch. Data lakes are incredibly complex to use, especially when you're dealing with loading dozens of log sources into SQL tables with strict schema requirements.
Their platform offers schemaless log data indexing, which means you can dump in your logs without worrying about structure.
And the best part, your data never leaves your S3 buckets. You maintain complete custody at all times.
And for your security team, we've made detections as code a breeze with CI/CD that syncs directly with GitHub. No more complex queries or waiting hours for results.
So my next question is, how do you keep your company's data safe when it's sitting on all those unmanaged apps and devices?
1Password Extended Access Management helps you secure every sign-in for every app on every device because it solves the problems traditional IAM and MDM can't touch.
It ensures that every user credential is strong and protected, every device is known and healthy, and every app is visible.
Can you join us at our favorite part of the show, the part of the show that we like to call Pick of the Week.
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 like.
It doesn't have to be security-related necessarily.
Now, once upon a time, there was a hilarious BBC sitcom called Motherland. Did you ever watch that, Carole?
And one of the standout characters was a ghastly character called Amanda. And she now has her own spin-off sitcom. I don't know if you've seen it called Amandaland.
She's downsized to new surroundings. She's no longer living in Chiswick. She's now living in South Harlesden or SoHa as she's rebranded it.
She's a truly terrible human being, in particular to her BFF, Anne. Makes it utterly wonderful to watch.
It's one of those programs where I can imagine you cringing while watching it, Carole. I can imagine you feeling quite uncomfortable.
I now have a cat, so I just wrap the cat around my face and listen to it purr until it's over.
Philippa Dunne is Anne, and the immortal Joanna Lumley is Amanda's mother. But I've been quite enjoying it. So my pick of the week is Amandaland on BBC iPlayer.
Carole, what's your pick of the week?
And since then, the oldest smart home in Germany has stood abandoned. And today, 50 years on, we have a cute little family moving in.
And soon after, Cassandra awakens like Cinderella, if Cinderella were a smart home robot. And Cassandra will do anything to win over the family.
Everyone except the mom, because she prefers to be the headwoman of the house.
And she has a TV Max Headroom for her head.
It's got some beautiful shots, and the sets are super stylish because it's mid-century architecture drool fest. Plus, you know, a robot with a goal. What's not to?
And don't forget to ensure you never miss another episode. Follow Smashing Security in your favorite podcast app, such as Apple Podcasts, Spotify, and Pocket Casts.
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For episode show notes, sponsorship info, guest list, and the entire back catalog of more than 405 episodes, check out smashingsecurity.com.
And so Dave and I were feeding it to each other. Anyway, you were missed. All I can say is you could have helped scoff it all.
Hosts:
Graham Cluley:
Carole Theriault:
Episode links:
- Incident Update: Unauthorized Activity Involving ETH Cold Wallet – Bybit.
- Bybit Launches Recovery Bounty Program with Rewards up to 10% of Stolen Funds – Bybit.
- ZachXBT links Bybit hack to Lazarus Group – Twitter.
- Online Safety Act: explainer – GOV.UK
- These Are The 10 Most Complained-About TV Moments In Ofcom’s History – Ofcom.
- Ofcom to push for better age verification, filters and 40 other checks in new online child safety code – TechCrunch.
- UK’s internet watchdog toughens approach to deepfake porn – TechCrunch.
- Girlguiding research exposes alarming online harms facing girls – Charity Today News.
- Ofcom’s approach to implementing the Online Safety Act – Ofcom.
- Women’s abuse online: ‘I get trolled every second, every day’ – BBC.
- Amanda’s funniest moments in Motherland – YouTube.
- Amandaland – BBC iPlayer.
- Cassandra Sci-Fi Thriller limited series – Netflix.
- Smashing Security merchandise (t-shirts, mugs, stickers and stuff)
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Theme tune: “Vinyl Memories” by Mikael Manvelyan.
Assorted sound effects: AudioBlocks.
