BALANCER BLAMES SOCIAL ENGINEERING ATTACK ON DNS PROVIDER FOR WEBSITE HIJACK

Last updated: June 19, 2025, 20:41 | Written by: Erik Voorhees

The world of decentralized finance (DeFi) is constantly evolving, offering innovative solutions and opportunities. Blockchain security firms SlowMist and CertiK also believe the crypto wallet drainer, Angel Drainer, was involved in the estimated $238,000 exploit. The team behind Balancer, an Ethereum-based automated market maker, believes a social engineering attack on its DNS service provider was what led to its website s front end being compromised on Sept. 19, leading to an estimated $238,000 inHowever, this exciting space is also a prime target for malicious actors. Menu. Home; Bitcoin Chart; Cryptocurrency News; Live PricesRecently, Balancer, a prominent Ethereum-based automated market maker (AMM), fell victim to a sophisticated cyberattack.The Balancer team believes that a carefully orchestrated social engineering attack targeting their domain name system (DNS) provider, EuroDNS, was the root cause of a website hijack that led to the theft of approximately $238,000 in cryptocurrency.This incident serves as a stark reminder of the vulnerabilities that can exist even within seemingly secure systems and highlights the critical importance of robust security measures across the entire digital ecosystem. Blockchain security firms SlowMist and CertiK also believe the crypto wallet drainer Angel Drainer was involved in the estimated $238,000 exploit. The team behind Balancer, an Ethereum-based automated market maker, believes a socialIt’s a complex situation that involves understanding DNS security, the human element of cybersecurity, and the increasingly sophisticated tactics employed by cybercriminals in the crypto space.

The incident underscores the need for not only technical defenses but also employee training to prevent social engineering attempts.This article will delve into the details of the attack, explore the mechanisms behind it, and offer practical advice on how to protect yourself and your organization from similar threats. The team behind Balancer, an Ethereum-based automated market maker, believes a social engineering attack on its DNS service provider was Sunday, Ap All newsFrom understanding Border Gateway Protocol (BGP) hijacking to identifying potential red flags of social engineering, we'll cover the essential knowledge you need to stay safe in the ever-changing digital landscape.

Understanding the Balancer Attack and Its Implications

The Balancer incident unfolded on September 19th when users reported suspicious activity and unauthorized transactions.An investigation quickly revealed that the Balancer website's frontend had been compromised, allowing hackers to inject malicious code.This code, often referred to as a crypto wallet drainer, intercepted user transactions and redirected funds to attacker-controlled addresses.

The Role of Social Engineering

What makes this attack particularly concerning is the method used to gain access.Balancer's team believes that a social engineering attack against EuroDNS, their DNS provider, was the key.Social engineering relies on manipulating individuals into divulging confidential information, granting unauthorized access, or performing actions that compromise security.This can involve impersonating legitimate individuals, exploiting trust, or using psychological tactics to bypass security protocols.

In this case, the attackers likely impersonated authorized personnel from Balancer or EuroDNS to convince EuroDNS employees to make changes to Balancer’s DNS records. Balancer blames social engineering attack on DNS provider for website hijack Copy Link. Cointelegraph . Subscribe. Favorite. Share. Scan withThese changes would have redirected website traffic to a malicious server controlled by the attackers.

Examples of social engineering tactics include:

Phishing: Sending fraudulent emails that appear to be from legitimate sources, tricking recipients into clicking malicious links or providing sensitive information.
Pretexting: Creating a fabricated scenario or identity to gain trust and extract information.
Baiting: Offering something enticing, such as a free download or a gift card, to lure victims into clicking a malicious link or providing personal data.
Quid pro quo: Offering a service or favor in exchange for information or access.

The Impact of DNS Hijacking

Once the attackers gained control of Balancer's DNS records, they could effectively redirect users to a fake website that mimicked the real Balancer interface.Unsuspecting users who visited the fake website and attempted to interact with the platform would have their cryptocurrency stolen. Balancer, a highly innovative Ethereum-based automated market maker, experienced a temporary setback due to a social engineering attack on its DNS service provider, EuroDNS. This incident led to a brief compromise of its frontend.This type of attack is known as DNS hijacking or DNS spoofing.

The consequences of DNS hijacking can be severe, including:

Financial losses: Users can lose their cryptocurrency or other assets.
Reputational damage: The affected organization's reputation can be tarnished, leading to a loss of trust and customers.
Data breaches: Attackers can gain access to sensitive user data, such as login credentials and financial information.
Service disruptions: Websites and online services can become unavailable to users.

Technical Details: BGP Hijacking and Crypto Wallet Drainers

While the initial breach stemmed from social engineering, the attackers likely employed other technical methods to maximize their impact.Blockchain security firms like SlowMist and CertiK believe that the Angel Drainer crypto wallet drainer was involved in the exploit.

Understanding Crypto Wallet Drainers

A crypto wallet drainer is a type of malicious code designed to steal cryptocurrency from users' wallets. The team behind Balancer, an Ethereum-based automated market maker, believes a social engineering attack on its DNS service provider was Balancer blames social engineering attack on DNS provider for website hijackThese drainers typically work by intercepting transactions and redirecting the funds to an attacker-controlled address. Balancer, an Ethereum-based automated market maker said a social engineering attack on its DNS service provider, EuroDNS was what led to its frontend being compromised.They often operate by prompting users to sign seemingly harmless transactions that, in reality, grant the drainer permission to access and transfer funds from their wallets.

The Angel Drainer, specifically, is known for its sophisticated techniques and ability to bypass common security measures.Its involvement in the Balancer attack suggests a high level of technical expertise on the part of the attackers.

The Potential Role of BGP Hijacking

SlowMist suggested that the exploiters attacked Balancer's website via Border Gateway Protocol (BGP) hijacking.BGP is the routing protocol that allows different networks to communicate with each other on the internet.BGP hijacking involves manipulating internet routing tables to take control of IP addresses. The team behind Balancer, an Ethereum-based automated market maker, believes a social engineering attack on its DNS service provider was what led to its website s frontend being compromised on Sept. 19, leading to an estimated $238,000 in crypto stolen. After investigation, it is clear that this was a social engineering attack on EuroDNS, the domainBy hijacking Balancer’s IP addresses, the attackers could have intercepted traffic intended for the legitimate website and redirected it to their malicious server.

While Balancer's primary statement focuses on the EuroDNS compromise, BGP hijacking remains a possible contributing factor.It’s important to note that these are complex attacks, and often multiple methods are used in conjunction.

Preventing Social Engineering Attacks: A Comprehensive Guide

Given the devastating impact of social engineering attacks, it's crucial to implement robust security measures to protect your organization and yourself. The team behind Balancer, an Ethereum-based automated market maker, believes a social engineering attack on its DNS service provider was what led to its website s frontend being compromised on Sept. 19, leading to an estimated $238,000 in crypto stolen.Here are some key strategies:

Employee Training and Awareness Programs

Your employees are your first line of defense against social engineering attacks.Comprehensive training programs should educate them on the different types of social engineering tactics, how to identify them, and how to respond appropriately.

Simulated phishing attacks: Conduct regular simulated phishing attacks to test employees' awareness and identify areas where training is needed.
Role-playing exercises: Simulate real-world social engineering scenarios to help employees practice their response skills.
Regular security updates: Keep employees informed about the latest social engineering trends and techniques.

Strong Authentication and Access Controls

Implement strong authentication methods, such as multi-factor authentication (MFA), to protect user accounts from unauthorized access.MFA requires users to provide multiple forms of identification, such as a password and a code sent to their mobile device, making it much more difficult for attackers to gain access to accounts even if they have obtained a password.

Additionally, enforce strict access controls to limit employees' access to sensitive information and systems based on their job roles and responsibilities. The Balancer team, creators of the Ethereum-based automated market maker, revealed that a social engineering attack on its DNS service provider, EuroDNS, triggered a security breach on September 19. The breach resulted in a substantial loss of approximately $238,000 in cryptocurrency.This principle, known as least privilege, ensures that employees only have access to the resources they need to perform their duties, minimizing the potential damage from a compromised account.

Robust DNS Security Measures

Organizations should implement strong DNS security measures to protect their websites and online services from DNS hijacking attacks.

DNSSEC (Domain Name System Security Extensions): DNSSEC adds a layer of security to the DNS system by digitally signing DNS records.This helps to prevent attackers from tampering with DNS records and redirecting traffic to malicious servers.
Regular DNS audits: Conduct regular audits of your DNS records to ensure that they are accurate and have not been tampered with.
Choose a reputable DNS provider: Select a DNS provider with a strong security track record and robust security measures in place.

Incident Response Plan

Develop a comprehensive incident response plan that outlines the steps to be taken in the event of a security breach. Related Posts Litecoin shrimps capitulate as LTC declines Grayscale launches investment fund for AVAX Token, Binance to support Render token swap and rebranding, The team behind Balancer, an Ethereum-based automated market maker, believes a social engineering attack on its DNS service provider was what led to [ ]This plan should include procedures for:

Identifying and containing the breach: Quickly identify the source and extent of the breach and take steps to contain it.
Investigating the incident: Conduct a thorough investigation to determine the cause of the breach and identify any affected systems or data.
Remediating the damage: Take steps to repair any damage caused by the breach and restore affected systems and data.
Reporting the incident: Report the incident to relevant authorities, such as law enforcement and regulatory agencies.

Staying Vigilant and Proactive

Cybersecurity is an ongoing process, not a one-time fix. The Balancer team believes a social engineering attack on its domain registrar and dns provider led to an estimated $238,000 in crypto being stolen.It’s crucial to stay vigilant and proactive in protecting your organization and yourself from social engineering attacks.This includes:

Staying informed about the latest threats: Keep up-to-date on the latest social engineering trends and techniques by reading industry news, attending security conferences, and following cybersecurity experts on social media.
Regularly reviewing and updating security policies: Review and update your security policies regularly to ensure that they are effective and address the latest threats.
Promoting a culture of security awareness: Foster a culture of security awareness within your organization, where employees are encouraged to report suspicious activity and take security seriously.

Real-World Examples of Social Engineering Attacks

Understanding how social engineering attacks work in practice can help you better identify and prevent them. SlowMist said the exploiters attacked Balancer s website via Border Gateway Protocol hijacking a process where hackers take control of IP addresses by corrupting internet routing tables.Here are some real-world examples:

The Target Data Breach (2013): Attackers gained access to Target's network through a third-party HVAC vendor.The attackers sent phishing emails to the vendor's employees, tricking them into clicking malicious links and providing their login credentials.
The RSA Security Breach (2011): Attackers sent phishing emails to RSA employees that contained malicious attachments.When employees opened the attachments, they installed malware on their computers, allowing the attackers to gain access to RSA's network.
The Ubiquiti Networks Scam (2015): Attackers impersonated Ubiquiti Networks executives and sent fraudulent emails to the company's finance department, instructing them to transfer funds to attacker-controlled bank accounts.

Answering Your Questions About Social Engineering

What are the most common red flags of a social engineering attack?

Several red flags can indicate a potential social engineering attack.Be wary of:

Unsolicited requests for sensitive information.
Urgent or threatening language.
Requests that bypass normal procedures.
Unexpected emails or phone calls from unfamiliar sources.
Typos or grammatical errors in emails or communications.
Links or attachments from unknown senders.
Requests for your username or password.

What should I do if I suspect I've been targeted by a social engineering attack?

If you suspect you've been targeted by a social engineering attack, take the following steps:

Report the incident to your IT department or security team immediately.
Change your passwords for all affected accounts.
Monitor your accounts for suspicious activity.
Be cautious of any further communications from the attacker.
If you've provided any sensitive information, consider contacting your bank or credit card company.

How can I educate my family and friends about social engineering?

Educating your family and friends about social engineering is crucial for protecting them from these types of attacks.Share this information with them, explain the different types of social engineering tactics, and encourage them to be cautious when interacting with unfamiliar sources online.Emphasize the importance of verifying requests for information and never clicking on suspicious links or attachments.

The Future of Cybersecurity and Social Engineering

As technology evolves, so too do the tactics of cybercriminals. 10 subscribers in the VirtualCoinCap community. Real-time Cryptocurrency Market Prices, Charts, Blockchain Cryptocurrency News, PortfolioSocial engineering attacks are becoming increasingly sophisticated, making it more challenging to identify and prevent them. Blockchain security firms SlowMist and CertiK also believe the crypto wallet drainer Angel Drainer was involved in the estimated $238,000 exploit.Source: httIn the future, we can expect to see the use of artificial intelligence (AI) and machine learning (ML) to create more convincing and personalized social engineering campaigns.

To stay ahead of these evolving threats, organizations and individuals must invest in ongoing cybersecurity training and awareness programs, implement strong security measures, and foster a culture of security awareness.By working together, we can create a more secure digital environment for everyone.

Conclusion: Key Takeaways and Actionable Advice

The Balancer website hijack serves as a stark reminder of the ever-present threat of social engineering attacks. The team behind Balancer, an Ethereum-based automated market maker, believes a social engineering attack on its DNS service provider was what led to its website s front end being compromised on Sept. 19, leading to an estimated $238,000 in crypto stolen.By understanding the tactics used by attackers and implementing robust security measures, you can significantly reduce your risk of becoming a victim.Remember, the human element is often the weakest link in the security chain, making employee training and awareness programs crucial.

Here are some key takeaways:

Social engineering is a highly effective attack method that can bypass technical defenses.
Employee training and awareness are essential for preventing social engineering attacks.
Strong authentication and access controls are crucial for protecting user accounts.
DNS security measures, such as DNSSEC, can help prevent DNS hijacking.
A comprehensive incident response plan is necessary for effectively responding to security breaches.

Take action today to protect yourself and your organization from social engineering attacks. Balancer s investigations concluded that hackers had infiltrated EuroDNS, the company entrusted with managing Balancer s DNS registry, using social engineering techniques. This exploit involves manipulating unsuspecting individuals into exposing data, spreading malware, or giving away system access.Implement the security measures discussed in this article, educate your employees and loved ones, and stay vigilant in the face of evolving threats.By working together, we can create a more secure digital world. Crypto News. Cointelegraph. Balancer blames social engineering attack on DNS provider for website hijackIf you suspect your DNS provider has been compromised, immediately contact them and investigate the potential intrusion vectors.Always double-check the URLs and transaction details before interacting with any DeFi platform, and consider using hardware wallets for added security.