A couple of weeks ago some scammers created a replica of the Jaxx Wallet website to steal crypto coins of clients through fraud and illegitimate practices. Flashpoint, a cyber-security company that offers business risk advice, shared a blog post that the phishing website had been closed down. Security analysts from the firm had discovered several infections associated with the operations and moved quickly to remedy the situation.
Based on details shared by Flashpoint, that fraudulent site had similar content and address to the original website, hence generating minimal suspicion amongst the users. Nevertheless, when a client requested the download link for the desktop app, the phishing wallet contained two different malware; Clipper and KPOT that steal user information, including digital wallet addresses and other content from the user’s local hard disk.
The security team at Flashpoint also explained that the bogus wallet allowed the hackers to access the client’s backup phrase any time they attempted to restore their digital wallet. The clients executing the infected JAR file would get a notification in English and Russian that it was not possible to create new wallets due to some technical issues. The victims would then be directed to pair or restore their wallets, which asks them to input their backup phrase. Once the password is entered at this stage, it is sent to the hacker’s web server, and the victim is notified to try again later as the server was not available.
Don’t worry if you are a Jaxx user.
Based on what the Flashpoint security experts have found out since the attack occurred, there is no need to worry if you are a Jaxx user. The analysts have confirmed that the main reason for the attack was social engineering, with limited effects on the security status of the authentic Jaxx Wallets. Hence, clients can rest easy that their crypto funds are well secured from any security breaches.
The nature of social engineering attacks is that it depends on the attacker’s creativity in extracting some crucial information that would otherwise not be possible. For example, there are fake websites all over the internet that urge people to fill in their details to get some service. Through this method, it is the clients themselves who are willingly providing their details without requiring hackers to do any tampering with a website’s security.
The takeaway from this recent attempt to perform social engineering hacks on users of the Jaxx Wallet shows the importance of being cautious when visiting any website. The solution is to ensure you are staying safe and only using the official addresses. Remember that you can never be too paranoid with regards to keeping your money safe.