Binance has issued a warning about a rising threat of malware that manipulates withdrawal addresses to steal cryptocurrencies. The malware is known as ‘Clipper’ malware, but is also called ClipBankers and sometimes Cryware.
In a recent blog post, Binance said their security team is working to identify and blacklist suspicious addresses linked to these attacks. They are also notifying affected users.
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How Does ‘Clipper’ Malware Work?
Binance explained that the malware is capable of altering withdrawal addresses during the transaction process. The malicious software intercepts data copied to the clipboard, including cryptocurrency wallet addresses.
This allows the malware to replace a user’s original wallet address with one designated by the attacker, effectively redirecting funds to the criminal’s wallet.
Unless users double-check the pasted address, they might not notice the change, resulting in the loss of their cryptocurrency.
#Binance has detected that the “Clipper malware” is altering withdrawal addresses during transactions.
Android and web platforms are the primary targets, #Binance warned that even iOS users aren’t completely safe.
Many victims unknowingly install these malicious apps or browser… pic.twitter.com/oGAoBh2KsY
— Ajay Kashyap (@EverythingAjay) September 14, 2024
The company highlighted an increase in such activities on August 27 and warned users that the clipper malware is often spread through unofficial apps and plugins, primarily affecting Android devices.
Many victims unknowingly downloaded malicious apps when searching for software in different languages or through unofficial sources due to restrictions in their country. While Android devices are particularly vulnerable, Binance cautioned that iOS users should also stay vigilant.
Despite the surge in these types of attacks, Binance claims to have successfully prevented several crypto thefts.
“We have blacklisted the attacker addresses to prevent further fraudulent transactions. This has successfully thwarted numerous withdrawal attempts from potential victims,” the exchange said.
The threat of malware targeting cryptocurrency transactions is not new. Security researchers have long been aware of various malware strains designed to steal funds by replacing wallet addresses copied onto the clipboard.
Clipper malware, in particular, has become a significant concern in the cryptocurrency space due to the nature of its attack.
In July, Binance announced that its security team had successfully recovered $73 million in user funds stolen in hacks and scams. This amount exceeded the $55 million recovered throughout 2023.
According to Binance, the bulk of the recovered funds originated from hacks on exploited crypto platforms, while a portion came from various crypto scams.
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Cybercriminals Netted $1.6B in First Half of 2024
Cybercriminals netted nearly $1.6 billion in the first half of 2024, according to a report by Chainalysis, marking a sharp increase from $857 million during the same period in 2023.
In August, crypto-related scams surged, leading to a total of $310 million in losses from various exploits, marking the second-highest monthly figure this year.
Phishing was the most harmful type of attack, responsible for about $293 million of the total losses. Two major phishing incidents alone resulted in the theft of $238 million in Bitcoin and $55 million in DAI stablecoin.
Aside from phishing, several crypto projects also experienced significant attacks in August.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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