Smart Contract Bug Results in $31 Million Loss

A hacker stole $31 million from the blockchain company MonoX Finance , by exploiting a bug in software the service uses to draft smart contracts.

Specifically, the hack used the same token as both the tokenIn and tokenOut, which are methods for exchanging the value of one token for another. MonoX updates prices after each swap by calculating new prices for both tokens. When the swap is completed, the price of tokenIn­that is, the token sent by the user­decreases and the price of tokenOut­or the token received by the user­increases.

By using the same token for both tokenIn and tokenOut, the hacker greatly inflated the price of the MONO token because the updating of the tokenOut overwrote the price update of the tokenIn. The hacker then exchanged the token for $31 million worth of tokens on the Ethereum and Polygon blockchains.

The article goes on to talk about how common these sorts of attacks are. The basic problem is that the code is the ultimate authority — there is no adjudication protocol — so if there’s a vulnerability in the code, there is no recourse. And, of course, there are lots of vulnerabilities in code.

To me, this is reason enough never to use smart contracts for anything important. Human-based adjudication systems are not useless pre-Internet human baggage, they’re vital.

Posted on December 2, 2021 at 8:32 AM5 Comments

Intel is Maintaining Legacy Technology for Security Research

Interesting:

Intel’s issue reflects a wider concern: Legacy technology can introduce cybersecurity weaknesses. Tech makers constantly improve their products to take advantage of speed and power increases, but customers don’t always upgrade at the same pace. This creates a long tail of old products that remain in widespread use, vulnerable to attacks.

Intel’s answer to this conundrum was to create a warehouse and laboratory in Costa Rica, where the company already had a research-and-development lab, to store the breadth of its technology and make the devices available for remote testing. After planning began in mid-2018, the Long-Term Retention Lab was up and running in the second half of 2019.

The warehouse stores around 3,000 pieces of hardware and software, going back about a decade. Intel plans to expand next year, nearly doubling the space to 27,000 square feet from 14,000, allowing the facility to house 6,000 pieces of computer equipment.

Intel engineers can request a specific machine in a configuration of their choice. It is then assembled by a technician and accessible through cloud services. The lab runs 24 hours a day, seven days a week, typically with about 25 engineers working any given shift.

Slashdot thread.

Posted on November 30, 2021 at 1:28 AM32 Comments

Apple Sues NSO Group

Piling more on NSO Group’s legal troubles, Apple is suing it:

The complaint provides new information on how NSO Group infected victims’ devices with its Pegasus spyware. To prevent further abuse and harm to its users, Apple is also seeking a permanent injunction to ban NSO Group from using any Apple software, services, or devices.

NSO Group’s Pegasus spyware is favored by totalitarian governments around the world, who use it to hack Apple phones and computers.

More news:

Apple’s legal complaint provides new information on NSO Group’s FORCEDENTRY, an exploit for a now-patched vulnerability previously used to break into a victim’s Apple device and install the latest version of NSO Group’s spyware product, Pegasus. The exploit was originally identified by the Citizen Lab, a research group at the University of Toronto.

The spyware was used to attack a small number of Apple users worldwide with dangerous malware and spyware. Apple’s lawsuit seeks to ban NSO Group from further harming individuals by using Apple’s products and services. The lawsuit also seeks redress for NSO Group’s flagrant violations of US federal and state law, arising out of its efforts to target and attack Apple and its users.

NSO Group and its clients devote the immense resources and capabilities of nation-states to conduct highly targeted cyberattacks, allowing them to access the microphone, camera, and other sensitive data on Apple and Android devices. To deliver FORCEDENTRY to Apple devices, attackers created Apple IDs to send malicious data to a victim’s device — allowing NSO Group or its clients to deliver and install Pegasus spyware without a victim’s knowledge. Though misused to deliver FORCEDENTRY, Apple servers were not hacked or compromised in the attacks.

This follows in the footsteps of Facebook, which is also suing NSO Group and demanding a similar prohibition. And while the idea of the intermediary suing the attacker, and not the victim, is somewhat novel, I think it makes a lot of sense. I have a law journal article about to be published with Jon Penney on the Facebook case.

Posted on November 24, 2021 at 9:29 AM30 Comments

New Rowhammer Technique

Rowhammer is an attack technique involving accessing — that’s “hammering” — rows of bits in memory, millions of times per second, with the intent of causing bits in neighboring rows to flip. This is a side-channel attack, and the result can be all sorts of mayhem.

Well, there is a new enhancement:

All previous Rowhammer attacks have hammered rows with uniform patterns, such as single-sided, double-sided, or n-sided. In all three cases, these “aggressor” rows — meaning those that cause bitflips in nearby “victim” rows — are accessed the same number of times.

Research published on Monday presented a new Rowhammer technique. It uses non-uniform patterns that access two or more aggressor rows with different frequencies. The result: all 40 of the randomly selected DIMMs in a test pool experienced bitflips, up from 13 out of 42 chips tested in previous work from the same researchers.

[…]

The non-uniform patterns work against Target Row Refresh. Abbreviated as TRR, the mitigation works differently from vendor to vendor but generally tracks the number of times a row is accessed and recharges neighboring victim rows when there are signs of abuse. The neutering of this defense puts further pressure on chipmakers to mitigate a class of attacks that many people thought more recent types of memory chips were resistant to.

Posted on November 19, 2021 at 8:31 AM20 Comments

Is Microsoft Stealing People’s Bookmarks?

I received email from two people who told me that Microsoft Edge enabled synching without warning or consent, which means that Microsoft sucked up all of their bookmarks. Of course they can turn synching off, but it’s too late.

Has this happened to anyone else, or was this user error of some sort? If this is real, can some reporter write about it?

(Not that “user error” is a good justification. Any system where making a simple mistake means that you’ve forever lost your privacy isn’t a good one. We see this same situation with sharing contact lists with apps on smartphones. Apps will repeatedly ask, and only need you to accidentally click “okay” once.)

EDITED TO ADD: It’s actually worse than I thought. Edge urges users to store passwords, ID numbers, and even passport numbers, all of which get uploaded to Microsoft by default when synch is enabled.

Posted on November 17, 2021 at 7:53 AM62 Comments

Wire Fraud Scam Upgraded with Bitcoin

The FBI has issued a bulletin describing a bitcoin variant of a wire fraud scam:

As the agency describes it, the scammer will contact their victim and somehow convince them that they need to send money, either with promises of love, further riches, or by impersonating an actual institution like a bank or utility company. After the mark is convinced, the scammer will have them get cash (sometimes out of investment or retirement accounts), and head to an ATM that sells cryptocurrencies and supports reading QR codes. Once the victim’s there, they’ll scan a QR code that the scammer sent them, which will tell the machine to send any crypto purchased to the scammer’s address. Just like that, the victim loses their money, and the scammer has successfully exploited them.

[…]

The “upgrade” (as it were) for scammers with the crypto ATM method is two-fold: it can be less friction than sending a wire transfer, and at the end the scammer has cryptocurrency instead of fiat. With wire transfers, you have to fill out a form, and you may give that form to an actual person (who could potentially vibe check you). Using the ATM method, there’s less time to reflect on the fact that you’re about to send money to a stranger. And, if you’re a criminal trying to get your hands on Bitcoin, you won’t have to teach your targets how to buy coins on the internet and transfer them to another wallet — they probably already know how to use an ATM and scan a QR code.

Posted on November 16, 2021 at 6:18 AM15 Comments

Sidebar photo of Bruce Schneier by Joe MacInnis.