Every day, our dedicated security and IT team successfully repels a wide range of attacks from a variety of bad actors. From our years of experience, we know how vast the attack vectors of large companies are. And as we disclose today, they can include unexpected areas, such as the company’s recruitment process.

Our team recently identified North Korean hackers’ attempts to penetrate our ranks by applying for a job at Kraken.

https://www.youtube.com/watch?v=2vxhlnjkbbi

See full CBS News coverage of how Kraken identified and strategically interacted with North Korean hackers who tried to get a job with Kraken

What began as a regular employment process for engineering roles quickly transformed into intelligence gathering work, as candidates are carefully advanced through the employment process and learn more about tactics at every stage of the process.

This is an established challenge for the crypto community, and is an estimate that in 2024 alone, North Korean hackers stole over $650 million from crypto companies. We disclose these events as part of our ongoing transparency efforts to help businesses strengthen their defenses, both in cryptography and beyond.

Candidate’s red flag

From the beginning, there was something about this candidate. On the first call with the recruiter, they joined under a different name than the name on their resume and quickly changed it. Even more suspiciously, candidates switched voices from time to time, indicating that they were being coached in real time interviews.

Prior to this interview, industry partners had pushed us out that North Korean hackers were actively applying for jobs at crypto companies. I received a list of email addresses linked to the hacker group, one of which matched the email the candidate was using to apply for Kraken.

With this intelligence in hand, the Red team began their research using the Open Source Intelligence Gathering (OSINT) method. One method involved analyzing violation data that hackers often use to identify weak or reused users. In this example, we discovered that one of the emails associated with a malicious candidate is part of a larger network of false identities and aliases.

This meant that our team discovered a hacking operation in which one individual established multiple identities to apply for roles in the crypto space and beyond. Some names have been previously employed by multiple companies as our team identified work-related email addresses linked to them. One identity in this network was also known foreign agents on the sanctions list.

Technical contradictions emerged as our team delved deeper into the candidate’s history and qualifications

• The candidate used a MAC desktop with remote colocation, but interacted with other components via a VPN.
• Their resumes were linked to a GitHub profile containing email addresses published in past data breaches.
• The main format of the candidate’s ID appears to have been changed, using details that were stolen in an identity theft case probably two years ago.

By this point, the evidence was clear and our team was convinced that this was not just a suspicious job seeker, but a state-sponsored attempt at penetration.

Turning the table – how our team responded

Our security and recruitment teams have made strategic advances through a rigorous recruitment process, instead of handing over applicants. This meant posting multiple technical infosec tests and validation tasks multiple times, designed to extract important details about their identity and tactics.

Final round interview? Casual chemistry interviews with Kraken’s Chief Security Officer (CSO) Nick Percoco and several other team members. What the candidate didn’t notice was that this was a trap.

During standard interview questions, our team slid in two-factor authentication prompts, including asking candidates to confirm their location, retain government-issued IDs and recommend local restaurants in the city that they claim to be.

At this point, the candidates have been clarified. Upset, caught off guard, they struggled with basic validation tests and were unable to answer real-time questions about their city of residence and citizenship with confidence. By the end of the interview, the truth was clear. This was not a legitimate applicant, but a scammer trying to break into our system.

Commenting on the event, CSO Nick Percoco said:

“Don’t trust, check. This core cryptographic principle is more relevant than ever in the digital age. Country-sponsored attacks are not a problem with crypto or US companies, and not a global threat. Personal or business handling values ​​are the goals, and resilience begins with preparing to withstand these types of attacks.”

Key takeout

• Not all attackers will break in, but some will try to pass through the front door. As cyber threats evolve, security strategies are also needed. A holistic, proactive approach is important to protecting your organization.

• Generic AI makes deception easier, but it’s not innocent. Attackers trick the recruitment process part like technical evaluations, but real candidates usually pass verification tests that are not adopted in real time. Try to avoid the pattern of validation questions that hiring managers use.

• A culture of productive delusion is important. Security is not just an IT responsibility. In modern times, it is an organizational mindset. By actively engaging this individual, we identified areas to enhance our defense against future penetration attempts.

The next time you remember a suspicious recruitment application, sometimes the biggest threats may be disguised as opportunities.

In brief: Just when you think Amazon couldn’t possibly find another way to sell you stuff, the company comes up with something else: shopping links embeded in your photo library images. In essence, the feature lets you identify an item within a photograph in your Amazon Photos library and be directed to its store page.

Former Microsoft executive Panos Panay, now senior vice president of Amazon’s Devices and Services division, announced the update to Amazon Photos on Threads.

Panay’s post included a clip demonstrating the upgraded features. It starts with a generative AI search using a natural language query – “Max playing with robot dog,” in this case. This brings up several images in the user’s Amazon Photos library featuring the boy and the device.

The system works by selecting one of the images and then tapping the Lens icon underneath. This scans the photo and brings up Amazon store listings for visually similar items it identifies, such as the robot dog, allowing you to view its customer rating and price. From here, you can go directly to the store page for more information and to purchase an item – if desired.

Amazon says the feature is ideal for anyone who may have seen a product in an image and wanted one themselves, but didn’t know what it was called or where to find it.

Amazon’s help page doesn’t specifically say if turning off the Tag Photos feature will stop the shopping capabilities from working. Amazon’s Tag Photos and Tag Specific People tools use image recognition technology to analyze and apply tags to your photos and videos, allowing users to sort and search their photos by people, objects, actions, and scenes – as demonstrated by Panay.

There appear to be contradictory claims on how many people were asking for this new shopping feature, varying from everyone to virtually no one outside of Amazon. The replies to Panay’s post include some that are positive, with people noting its usefulness, along with negative ones arguing that this is basically product ads based on a user’s photos.

Non-fungible tokens (NFTs) have transformed our understanding of digital ownership, providing opportunities to invest in art, collectibles, gaming assets, and more. But finding valuable NFTs in this market requires careful consideration of many factors. Here’s a guide to help you navigate the NFT space and make informed decisions.

What are NFTs and How Do They Work?

NFTs are unique digital assets stored on blockchain technology, so you own and can prove ownership. Unlike Bitcoin or Ethereum, NFTs are not divisible and represent specific items, art, music, virtual real estate, in-game assets. Value is derived from rarity, provenance and demand so you need to understand how they work before you buy.

The NFT Market Today

The NFT market is growing and reached a 6 month high of $560 million in trading volume in November. Trends like DeFi and gaming NFTs are changing the market. Stay up to date with these trends to find opportunities and anticipate market movements.

Evaluating NFT Projects

A good project starts with a good team. Research the team’s background, their experience in the NFT space and their vision. Transparency, clear goals and a solid roadmap are good signs. Vague objectives or no communication are red flags.

A good community is often a sign of a successful NFT project. Active social media, regular updates and lively discussions on Twitter and Discord are good signs of community support. Check the sentiment and engagement levels to see how popular the project is.

Assessing NFT Value

Scarcity is the foundation of NFT value. Limited edition NFTs or those with unique attributes like exclusive content or event access are more valuable. Use blockchain explorers and metadata tools to check an NFT’s rarity and transaction history.

NFTs come in different categories like art, gaming and collectibles, each with its own attributes. Check the NFT’s design quality, technical specifications (blockchain and token standards) and any historical or cultural significance.

Verifying an NFT’s ownership history and past transactions is key. Blockchain explorers can verify the chain of ownership and show market trends. Look for NFTs with strong provenance to ensure authenticity and value.

NFT analytics are the new way to find valuable NFTs. These platforms give you detailed market trends, transaction history, rarity score and community sentiment to help you make a smart decision.

Data Driven Decisions: Nansen AI and DappRadar aggregate data to give you the full NFT picture. Metrics like trading volume, price trends and holder distribution are key to valuing potential.

Rarity and Scarcity Metrics: Rarity calculators calculate an NFT’s unique traits within a collection to determine its value compared to others.

Transaction History and Ownership Verification: Tools trace the chain of ownership, ensuring authenticity and identifying patterns in market behavior.

Risks and Volatility

NFT investments are subject to market volatility and liquidity risks. Rare and culturally significant NFTs have lower risk profiles but are still market condition dependent.

Market sentiment, scarcity and overall demand are the factors that cause price fluctuations. Stay informed about broader market trends and project-specific news to mitigate risks.

NFTs with real-world applications or in-game functionality are more valuable. Check the NFT’s use cases and make sure they align with your interests as a buyer.

The creator’s past work and reputation is key to an NFT’s value. Research the creator’s previous projects, community reputation and transparency.

The growing NFT market has attracted scams like fake marketplaces and phishing scams. Use trusted platforms, verify metadata and research market data to avoid scams. Be aware of common scam tactics to save time and resources.

Building a NFT Portfolio

Diversification is key to risk management. Invest in NFTs across different categories and platforms to spread the risk and increase the returns. Historical significance, cultural relevance and market data are the key factors to consider when curating your portfolio.

Summary

Investing in NFTs is exciting but requires research and understanding. By checking the project team, community, rarity and utility and being aware of scams, buyers can find valuable NFTs and navigate the market. Always use market data, social media insights and trusted platforms to make informed decisions and build your NFT portfolio.

Editor’s note: This article was written with the assistance of AI. Edited and fact-checked by Owen Skelton.