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$20K in Stolen Games, a $5M Crypto Blunder, and a Very Bad Week for Internet Security

This week in cybersecurity: stolen PlayStation accounts, AI chat transcripts sold by data brokers, tax-season scams, deepfake identity attacks, and a crypto wallet emptied after authorities accidentally exposed its seed phrase.

 & Alan Henry Managing Editor, Security

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When a hacker takes control of one of your accounts, your first move is to reach out to the company that manages the account to see if you can get help recovering it, right? Well, if you’re a gamer and you’re trying to get a PlayStation account back that’s been stolen, it looks like Sony may not be much help to you. This week, we reported that one man had his PlayStation account loaded with over $20,000 in games stolen, and Sony won’t talk to him about it. Even worse, he’s not alone. 

In this case, the hacker not only made off with the victim’s account but also scolded him on social media for trying to get it back, shamed the Sony employee who gave him the account, and eventually returned the account to its owner, helping him regain access. Years ago, consumer groups rightfully warned that digital game distribution places so much value behind a person’s account that their Steam, PlayStation, Xbox, and Nintendo accounts become extremely valuable targets for hackers. Fast forward to today, and selling stolen accounts is a lucrative practice, and you can find hackers selling them on the dark web or social media. Remember, enable multi-factor authentication wherever possible; even that may not have been enough in this case, since social engineering was the real attack vector here. 

Also this week, some relatively good news that suggests some authorities may not be asleep at the wheel when it comes to security: first of all, after an investigation by Maggie Hassan, a US Senator from New Hampshire, data brokers who tried to hide their opt-out and removal request pages from search engines (to make it harder to remove your personal data, obviously) have reversed course and made them easier to find. Hey, we take those wins. Additionally, federal authorities just shut down LeakBase, a huge repository of stolen data from malware, data breaches, and other hacks, and with the help of Europol, de-anonymized several users and took law enforcement action against them. 

Speaking of scammers, have you ever peeked in your spam folder and found messages that look like they were sent from your own address? Or maybe you’ve had someone reach out to you and say, “Hey, I got this strange message, and it says it’s from you?” If that sounds familiar, a scammer may have obtained your email address. Either they’ve breached it and are sending out phishing emails posing as you, or, more likely, they’re spoofing your address without actually accessing your account. In either case, we can help. 

Also, just in time for tax season, we updated our tips to avoid tax-season text scams. Trust us, the IRS isn’t going to send you a text message asking for money or information. If they need to contact you, they’ll likely send you physical mail first. Don’t fall for texts asking you to pay tax debts, or even deepfaked calls from people who present themselves as IRS agents. If you’re ever suspicious, collect details and call the IRS back directly. 

What else went down this week? Let's get to it.


Chat At Your Own Risk: Data Brokers Are Selling Deeply Personal Bot Transcripts

Ah, data brokers: Is there any type of personal data they're not interested in harvesting and selling? That’s a trick question; the answer is no. The Register has revealed that several data brokers are harvesting and selling deeply personal conversations with AI chatbots, despite claiming those conversations are anonymized and collected with consent. Now, if you’ve been around the internet for literally any period of time, you probably know that “collected with consent” often simply means “agreed to a terms of service agreement to use a thing,” and “anonymized” is often anything but. So it’s no surprise that data brokers are happy to sell chatbot logs to anyone willing to pay, and there’s definitely a market for them. 

The logs are usually obtained from third parties, not the data brokers themselves, when people do things we’ve warned about in the past, like install suspicious browser extensions or AI “helper” add-ons that actually record your conversations and send them to the developer. Data brokers then either harvest or purchase those logs and resell them to anyone interested in buying them for targeted advertising or analytics. It’s even more reason why you should be very careful about what information you give to an AI chatbot, and why you should read privacy policies before you agree to use any new service, especially when it comes to AI. 


How Deepfakes and Injection Attacks Are Breaking Identity Verification

One of the many issues with identity verification as a solution to the internet’s problems is that it’s coming at a time when deepfakes and generative AI are more accessible to more people than ever. So it’s not difficult to imagine a world where a hacker can easily steal someone's identity and use it to access systems that rely on things like face scans, voice recognition, or other easily fooled biometrics. Worse, that world is closer to reality than we may think. This report from Bleeping Computer examines these issues in detail. It also offers recommendations for security professionals facing pressure to implement a verification system that could be prone to deepfake or injection attacks. 

All of that may sound complicated, but it’s an interesting read even for the non-technically aligned: mostly because it’s a bit of a preview of some of the security challenges we’ll probably encounter in the near future. Already, scammers use audio and video deepfakes to trick individuals into giving them money, passwords, or other data, and the next step is to move beyond individuals and on to businesses, where the potential payouts are much, much larger. 


They Seized Millions in Crypto...Then Gave Away the Master Key

In information security, small mistakes can have huge consequences, even when it’s the experts at work. In this case, South Korea's National Tax Service (NTS) recently seized over $5 million in hardware and cryptocurrency from more than 100 tax evaders. It published a press release about the accomplishment, complete with photos of all the seized hardware and devices obtained in the operation. Unfortunately, in one of those photos, in plain sight, was a Ledger hardware crypto wallet and a handwritten note with its master seed phrase. Sure enough, by the morning after the release, someone had emptied the wallet. 

Even worse, researchers determined that the blockchain transaction occurred in the wee hours of February 27, shortly after the press release was published, indicating that someone clearly saw the release (and the seed phrase) and knew exactly what they wanted to do. Fortunately (or unfortunately, depending on your take on the situation), the nearly $5 million on the Ledger was in Pre-Retogeum (PRTG) tokens, a pretty obscure token that’s difficult to spend. So, like with most things crypto, the value is on paper, not necessarily in practice. Even so, it’s a good reminder not to doxx yourself or your personal data when you feel like posting a photo on the internet.

About Our Expert

Alan Henry

Alan Henry

Managing Editor, Security

My Experience

I've been writing and editing stories for almost two decades that help people use technology and productivity techniques to work better, live better, and protect their privacy and personal data. As managing editor of PCMag's security team, it's my responsibility to ensure that our product advice is evidence-based, lab-tested, and serves our readers.

I've been a technology journalist for close to 20 years, and I got my start freelancing here at PCMag before beginning a career that would lead me to become editor-in-chief of Lifehacker, a senior editor at The New York Times, and director of special projects at WIRED. I'm back at PCMag to lead our security team and renew my commitment to service journalism. I'm the author of Seen, Heard, and Paid: The New Work Rules for the Marginalized, a career and productivity book to help people of marginalized groups succeed in the workplace.

The Technology I Use

I'm writing this on a computer I built myself. It's powered by an Intel Core i7 with 32GB of RAM, 2TB of storage, and a disturbingly anime-themed NVIDIA GeForce 3070 inside (look, it was on sale). It's connected to a beautiful LG 34-inch ultrawide monitor on my left that I use for gaming (and spreadsheets) and an LG 27-inch 4K monitor in portrait mode on my right that I use for browsing, editing, and reading. Connect all of that to a Logitech Streamcam, an Elgato capture card, an Elgato Stream Deck, and an Elgato Wave:3 using the WaveLink software for mixing, and you might have figured out that I'm also a streamer.

When I'm not at my desk, I usually use a Microsoft Surface Laptop Studio, which is a little heavy for my tastes but incredible as a combination of laptop and tablet that I can use to work and game when I'm traveling. My IT-issued Lenovo Thinkpad is lovely and light, but it's on standby should I need it. My current phone is a Pixel 6 Pro.

I used to be more of an Apple person. These days, I have an iPad Air for art and easy reading and an old MacBook Pro that used to be my daily driver before the Surface entered my life.

I use Firefox for browsing, and keep a cadre of privacy tools installed to minimize my data footprint. I use Proton products both for VPN and secure email, and I trust Bitdefender and MalwareBytes to keep my data safe from harm.

A handful of Sonos speakers power the audio around my home when I'm not wearing headphones. Speaking of which, I have a collection of both wired and wireless headphones, but my daily wear is a set of Sennheiser HD6XXs that I adore. On the go, I resort to a pair of Beats Studio Buds for the true wireless experience (with a set of Comply eartips, for comfort).

If you're a gamer, ask me about my relationship with Destiny 2.

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