Hackers Attack Gambling Platform Workers to Pilfer Funds

Quick Intro

In a revealing analysis by the cryptocurrency security company Cyvers, it has been reported that hackers are breaching gambling platforms, leading to multi-million-dollar losses by exploiting employee security vulnerabilities.

Employee Security Lapses Lead to Massive Breaches

Cyvers has identified significant security breaches within crypto gambling platforms Duelbits and PlayDapp, resulting in substantial financial losses. Duelbits reportedly faced a loss of around $4.6 million, whereas PlayDapp suffered from the theft of approximately $290 million in PLA tokens. Meir Dolev, CTO and co-founder of Cyvers, pinpointed the root of these vulnerabilities not in the smart contracts often used by platforms but in the inadequate security protocols and network access controls among employees. Dolev revealed that hackers deploy sophisticated social engineering techniques, primarily through LinkedIn and email, to infiltrate networks and meticulously plan their attacks to siphon off funds gradually.

Cyvers’ Response to Detected Breaches

Upon detecting a breach, Cyvers’ protocol involves isolating and containing the incident while notifying the affected platform’s operators. This step is crucial for conducting an in-depth investigation to comprehend the breach’s extent, nature, and origin, as explained by Cyvers CEO and co-founder Deddy Lavid. Despite the alarming incidents at Duelbits and PlayDapp, Lavid noted a silver lining: the total funds stolen in 2023 saw a relative decrease compared to the previous year. However, the frequency of unauthorized access incidents has risen, with access control attacks leading to a staggering $1.08 billion in losses, far exceeding the $607 million lost to smart contract vulnerabilities.

Safeguarding Measures for Crypto Platform Users

In light of these attacks, Lavid and Dolev stress the importance of users adopting stringent security measures to protect their assets and personal information. They recommend enabling two-factor authentication, regularly updating passwords, and remaining vigilant against phishing scams that mimic legitimate communications from platforms. Furthermore, they advocate for the use of cold wallets for storing cryptocurrencies when not in use, as these offline storage solutions offer enhanced protection against online theft.

Cyvers’ insights into the recent breaches at Duelbits and PlayDapp underscore the critical need for heightened security awareness and practices among both gambling platform operators and users. For an in-depth exploration of how crypto platforms are navigating these challenges, Cyvers co-founders Deddy Lavid and Meir Dolev share their expert analysis and recommendations in an exclusive interview.

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