Source URL: https://yro.slashdot.org/story/25/05/30/2151248/us-sanctions-cloud-provider-funnull-as-top-source-of-pig-butchering-scams?utm_source=rss1.0mainlinkanon&utm_medium=feed
Source: Slashdot
Title: US Sanctions Cloud Provider ‘Funnull’ As Top Source of ‘Pig Butchering’ Scams
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**Summary:** The U.S. government has sanctioned Funnull Technology Inc., a company implicated in facilitating virtual currency investment scams. This action highlights the increasing economic impact of cybercrime in the cryptocurrency space, particularly scams like “pig butchering,” which have resulted in significant financial losses for Americans.
**Detailed Description:**
The U.S. Department of the Treasury has imposed sanctions on Funnull Technology Inc., a firm based in the Philippines, for its role in supporting virtual currency scams. This decision underscores the ongoing challenges related to cybersecurity, fraud prevention, and the regulatory environment surrounding digital currencies.
– **Background on the Sanction:**
– Funnull Technology Inc. was reported as a content delivery network (CDN) used by cybercriminals to facilitate operations linked to cryptocurrency investment scams.
– The sanctions involve actions against both the company and its Chinese administrator, Liu Lizhi, indicating a broader trend of targeting global entities involved in cybercrime.
– **Scam Overview:**
– The report describes “pig butchering,” a form of online fraud where victims are deceived into investing in non-existent cryptocurrency investments.
– Victims are often manipulated into increasing their investments with the false promise of substantial returns, only for their funds to vanish.
– **Financial Impact:**
– The Treasury’s statement highlights that victims have reported losses exceeding $200 million due to these fraud schemes, with a significant number of victims losing six figures.
– **Connection to Broader Criminal Activities:**
– Funnull’s operations were linked to a wide array of scam websites, including those promoting gambling and associated with larger criminal syndicates, such as the Lazarus Group, connected to state-sponsored hacking in North Korea.
– **Investigative Findings:**
– Research from Silent Push pointed out that a vast number of domains tied to Funnull were redirecting users to fraudulent platforms, indicating a complex infrastructure designed for cyber scams.
– The FBI has released a technical document outlining the infrastructure behind the Funnull-operated domains, reflecting a growing focus on transparency and cybersecurity strategy.
This incident magnifies the ongoing challenges faced by security and compliance professionals in addressing the unique vulnerabilities associated with cloud-based technologies, digital currencies, and the legal ramifications of international cyber operations. The sanctions also emphasize the importance of collaboration among government agencies, private security firms, and law enforcement to combat the rising tide of cybercrime effectively.