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$500K stolen via fake AI coding extension

10 months ago
  • #blockchain
  • #cybersecurity
  • #malware
  • Malicious open-source packages are a growing threat, with frequent reports of infected packages in repositories like PyPI or npm.
  • A blockchain developer lost $500,000 in crypto assets after installing a malicious Solidity Language extension for the Cursor AI IDE.
  • The malicious extension, downloaded 54,000 times, was a fake offering no real functionality but instead downloaded and executed malicious code.
  • The fake extension appeared higher in search results than the legitimate one due to the Open VSX registry's ranking algorithm, which considers factors like recency.
  • The malicious extension downloaded PowerShell scripts that installed ScreenConnect, allowing attackers remote control over the victim's computer.
  • Attackers used ScreenConnect to upload VBScripts that downloaded additional malware, including the Quasar backdoor and a stealer targeting crypto wallets.
  • After the initial malicious extension was taken down, attackers published another fake extension with an identical name to the legitimate one, inflating download counts to two million.
  • Similar malicious packages and extensions were found, indicating a broader campaign targeting blockchain developers.
  • Recommendations include verifying packages before download, being suspicious of non-functional software, and using cybersecurity solutions to block known malware.