US authorities, with help from blockchain analyst Chainalysis, have recovered $30 million worth of cryptocurrency stolen from Axie Infinity in March. It’s but a fraction of the $625 million the play-to-earn game lost to the North Korean-linked hacking unit known as the Lazarus Group, but it’s a significant achievement for law enforcement and the crypto community. Chainalysis says this is the first time that cryptocurrency stolen by a North Korean hacking group has been seized.
As the analyst explains, North Korea-linked groups typically use Tornado Cash to mix Ether, but the sanctions the US imposed on the mixer forced them to employ alternative techniques. They now use blockchain bridges to switch between different kinds of digital coins in an effort to obscure the source of their funds, and the analyst had the tools necessary to trace those cross-chain movements.
Apparently, most of the funds stolen from Axie Infinity remain in the blockchain, showing that the bad actors are having a tough time moving stolen assets around and converting them into fiat currency. Chainalysis seems confident that this won’t be the last time stolen funds would be recovered from these hacking groups.
According to Bleeping Computer, news about the fund retrieval was announced at the ongoing AxieCon event. The game’s publishers have revealed that the money authorities recovered will be gradually moved into Axie Infinity’s treasury and then back to its player community. However, it won’t be a quick process, and it could take several years to accomplish.
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Hopefully, the day will never come when you find your Facebook account has been hacked or taken over. It is an awful feeling, and I feel for you, for the world of hurt that you will experience in time and perhaps money to return your account to your rightful control.
Let me take you through the recovery process. Afterward, I’ll provide some proactive security pointers you can follow to prevent this awful moment from happening, or at least reduce the chances that it will.
Three ways you can lose control of your Facebook account
There are actually three different possible scenarios.
Scenario 1. You let a family member or friend “borrow” your Facebook account on your computer or phone. They proceed to consume content, post messages as you, or befriend random people. This happened to a friend of mine, who had a grandchild staying at her home for a week. The girl left town and left a mess behind on my friend’s Facebook account. “She didn’t post anything to my account, but I had odd friend requests that I had to clean up. I decided to just quit using my account.” This is more of a nuisance than a hack, but still annoying.
This list should also remind you of all of the devices that you have used Facebook on in the past. I took this screenshot after I found (and then removed) an older Windows laptop that I hadn’t used in years on the list. You’ll also see an entry for my iPhone that is located somewhere in Indiana. I haven’t visited that state in years, so sometimes the geo-location algorithms are a bit wonky. Even if your account isn’t hacked, it is helpful to routinely check this screen to make sure you haven’t enabled a login by mistake.
If you don’t recognize (or don’t use) any of the devices on this list, click on the three vertical dots on the right and force those machines to log out of your account. Next, change your password to something unique. Also, remember in the future to sign out of Facebook (and Messenger) before you loan your device to anyone.
Scenario 2. Someone uses your photo and name and sets up a new account. Then they proceed to try to recruit your FB friends to their account.
Remedy: There isn’t much you can do about it, other than tell people you are still you and to ignore the imposter. This should be a warning when you receive a friend request from someone you think you have already befriended, or someone you haven’t communicated with in years. A word to the wise: send them an email or text asking if the request is genuine.
Scenario 3. The doomsday scenario. Someone guesses your account password and proceeds to lock you out of your account. This situation is the most dire, and fixing this will depend on what else you have linked to your Facebook account and how determined you are to get it back.
This happened to Elizabeth, a book author. She ended up working with two different friends who were IT professionals and a lawyer over the course of four months. She had two complicating factors that made recovering her account difficult.
First, she used Facebook ads to promote her books, so she had connected her login to her credit cards. This resulted in the hacker charging her card with their own ads to try to lure other victims to compromise themselves.
The second complication was that she was using her pen name and a random birthday date for her account. During the recovery process, Facebook asks that you scan your ID to verify who you are. When she told me this, I became concerned for myself. For years I prided myself on using January 1 as my Facebook “birthday.” Now she was telling me that I was setting myself up for trouble if someone hacked my account.
She eventually got her password reset, but almost immediately the hacker reset and took over her account again. “I tried to get someone at Facebook to help me, but I couldn’t get anyone on the phone,” she told me. Before the pandemic, the company had a special phone hotline for industry insiders, “but this was discontinued,” she said. She had more success blocking the credit card charges by phoning her bank. “I was trying to be a step ahead of the hacker, and losing sleep. My whole life was put on hold as I tried to deal with the situation. I got no work done for months. I ended up changing my passwords on more than 30 different accounts.”
Possible remedies: if you find yourself in this last situation, you have three basic choices:
1. Now would be a good time to leave Facebook. The trouble is, you have someone who is pretending to be you, and could leverage your identity into criminal and uncomfortable situations. Not to mention that they could try to leverage bank accounts that are linked to your account or open up credit cards in your name. (More on that in a moment.)
2. Try to reinstate your account on your own, using Facebook’s own obscure and oftentimes contradictory steps. That is the way most people I know have tried. However, you will find out very quickly that there is no easy way to do this. You have to communicate with Facebook support through someone else’s account, which seems somewhat contradictory, so hopefully your spouse or friend is willing to lend a hand. (Don’t be tempted to set up a second account, because that could result in both of your accounts eventually being canceled.) Then you have to choose one of several options (finding an unauthorized post, an account that uses your own name and/or photos) and enter the rabbit hole to recover your account.
If you use Facebook as a means to log into other internet services, you will have to disconnect these links — otherwise a hacker can then compromise these other accounts. If, like Elizabeth, you have connected your credit card or other financial accounts, you will have to contact these institutions and get these charges rescinded. Start by trying to use Facebook from other devices you have previously used: perhaps the hacker hasn’t automatically logged you out.
3. Use a third-party recovery service, such as Hacked.com. This will cost you $249, but the company will be persistent and if they can’t help you, they will refund your fee. You also get a year’s digital protection plan included that normally sells separately for $99. If you have a complex situation like Elizabeth (connected finances, non-matching birthday), I recommend using this path.
But make sure you aren’t employing some random hacker who might be taking your money and doing nothing else. I spoke to Hacked.com founder Jonas Borchgrevink, who outlined the various sequences of steps that his staffers try in a recent Washington Post article. And he confirmed that if you are using a different name from what is shown on your ID, it is almost impossible to recover your account.
Proactive security measures
If you haven’t been hacked (yet) and are getting somewhat uncomfortable reading this, here are some steps to take to secure your Facebook account, or to at least reduce your pain points if it does happen. Start by doing at least one of them today, and make sure you take care of all of the items as soon as possible.
1. Set up additional login security on your Facebook account. Facebook offers you a set of confusing choices, but the one that I recommend is to use a two-factor authenticator app such as Google Authenticator. (You can start at this Facebook page.)
Two-factor authentication (also known as 2FA) uses an Android or iOS smartphone app as part of the login process. After you supply your username and password, Facebook asks you to type in a series of six numbers that are generated by the app. These numbers change every minute, so you need your phone nearby when you log in. If you want extra credit, take the time to enable this second factor method on your other accounts, including any banks and credit card companies that support this method (sadly, too few do).
Elizabeth was using a less secure method for her second factor: sending the six numbers as a text message to her phone. You can read more about why this isn’t my preference.
2. Check to see if you have any payment methods configured on Facebook. While preparing for this article, I was surprised to find my PayPal address linked to my Facebook account — and I thought I was being careful about my Facebook security. There are two places to check. First, there is the page that shows if you have set up any credit cards to make direct payments to individuals or causes, called Facebook Pay. Go to this other link to remove any ad payment methods. If you are running any ad campaigns on your business, you will have to stop them first.
3. Remove connected apps and websites. If you have signed on to third-party apps using your Facebook credentials, now is the time to review and remove them (you can find the appropriate page here). The same is true with removing any business integrations. You take a small hit in not being able to automatically log into these other services, but you also protect yourself if your account has been compromised.
If you have a Facebook business page, you should have at least two people who have admin rights to this page. (Go to Page Settings > Page Roles.) If your business account is hacked and you are the sole admin, it will be next to impossible to get it recovered. This contact should also have second factor authentication turned on.
4. Check your account’s email contacts (using this Facebook page). You should have at least a second contact email (or more) that Facebook can use to send you notifications in case your main email address becomes compromised. Of course, use different passwords with these different email accounts.
I know, this seems like a lot of work, and there are a lot of places in the Facebook settings pages that you will have to visit and pay attention to. And chances are, the links provided above might not work in the future, as Facebook likes to make changes to its settings.
If these activities to make yourself more secure haven’t gotten you frustrated, you might want to continue improving your security. I recommend either the Jumbo smartphone app for iOS and Android, or Avast One (available on Windows, Mac, iOS, and Android). Either can help walk you through the numerous steps to secure your Google, Twitter, and other accounts.
Parting words of wisdom
Think before you click. If you get a message from what looks like a social media company saying that your account has been compromised, don’t follow any links or call any phone numbers in the message. This could be a lure from a hacker. Instead, navigate to the site or use its own app directly.
Be aware of things that seem unusual. Keep an eye out for messages you didn’t send, posts you didn’t create, or purchases you didn’t make. These could be tells that someone has guessed your password or compromised your account. If you are lucky, it might be an errant teen using one of your computers.
As Elizabeth told me, “Being hacked is like getting a digital tattoo — everyone can see the after-effects of your poor choices.”
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Options for targeting digital advertising in a way that doesn’t rely on cookies are increasing, thanks to advances in predictive analytics and AI that will ultimately lessen the current dominance of Google, Facebook, and other large-scale content aggregators.
Google announced earlier this month that it will no longer allow third-party cookies to collect data via its Chrome browser. Many companies have historically relied on those cookies to better target their digital advertising, as the cookies enable digital ad networks and social media sites to create a profile of an end user without knowing specifically who that individual is. While that approach doesn’t necessarily breach anyone’s privacy, it does give many users the feeling that some entity is tracking the sites they visit in a way that makes them uncomfortable.
Providers of other browsers, such as Safari from Apple and the open source Firefox browser, have already abandoned third-party cookies. To be clear, Google isn’t walking away from tracking user behavior. Instead, the company has created a Federated Learning of Cohorts (FLoC) mechanism to track user behavior that doesn’t depend on cookies to collect data. Instead of being able to target an ad to a specific anonymous user, advertisers are presented with an opportunity to target groups of end users that are now organized into cohorts based on data Google still collects.
It remains to be seen how these initiatives might substantially change the user experience. However, some advertisers are now looking to employ machine learning algorithms and other forms of advanced analytics being made available via digital advertising networks to reduce their dependency on Google, Facebook, Twitter, Microsoft, and other entities that control massive online communities.
For example, Equifax, a credit management bureau, is working with Quantcast to place advertising closer to where relevant content is being originally created and consumed, said Joella Duncan, director of media strategy for North America at Quantcast.
“We want our marketing teams to be able to pull more levers,” Duncan said. “Third-party cookies are stale.”
That approach provides the added benefit of lessening an advertiser’s dependency on walled online gardens dominated by a handful of companies, Quantcast CEO Konrad Feldman said.
At the core of the Quantcast platform is an Ara engine that applies machine learning algorithms to data collected from 100 million online destinations in real time. That data is then analyzed using a set of predictive models that surface the behavioral patterns that make it possible to target ad campaigns. Those predictive models are scored a million times per second, in addition to being continuously updated to reflect recent events across the internet. “We’re not dependent on only one technique,” Feldman said.
That capability not only benefits clients such as Equifax, it also enables publishers of original content to retain a larger share of the advertising revenue generated. Google, Facebook, and Microsoft are all now moving toward compensating publishers for content that appears on their sites, but the bulk of the advertising revenue will still wind up in their coffers.
Quantcast is making a case for an alternative approach to digital advertising that would make it more evenly distributed. Advertisers are not likely to walk away from walled online gardens that make it cost-efficient for them to target millions of users. However, many of those same advertisers are looking for a way to more efficiently target narrower audience segments that might have a greater affinity for their products and services based on the content they regularly consume.
The AI and advanced analytics capabilities being embedded within digital advertising platforms may not upend the business models used by Google, Facebook, and others and based on walled gardens that themselves were constructed using algorithms. But it’s becoming apparent that fissures in the walls of those gardens are starting to appear as other entities in the world of advertising apply their own AI countermeasures.
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