Financial Authority of Germany Warns of Malware Attacks on Crypto Apps

Financial Authority of Germany Warns of Malware Attacks on Crypto Apps

The financial authority of Germany has issued a warning about the "Godfather" malware attacking banking and crypto applications. The regulator has warned that hundreds of platforms have been targeted, including those operating in the Bundesrepublik.

Alert Notice on Malicious Software “Godfather”

The Federal Financial Supervisory Authority of Germany (Bafin) has warned consumers of the threats from malicious software known as "Godfather." The Trojan often mimics a legitimate app and records user input when accessing fiat and crypto accounts.

The authority published an alert on Monday, saying that Godfather has already attacked around 400 banking and crypto apps, including those developed by financial institutions operating in Germany.

It is not clear how the malware loads onto the targeted devices, but it usually launches as a fake interface of a regular banking or crypto application to collect login information and transmit it to cybercriminals, Bafin explained.

The malware also sends push notifications to obtain codes generated for two-factor authentication purposes. The acquired data allows hackers to gain access to customer accounts and digital wallets, as detailed in the press release.

In November, the Federal Office for Information Security (BSI) in Germany published an educational video for consumers in the country with practical tips on how to safely use their mobile apps.

The Godfather malware can take control of Android-based devices to download and install other malicious software. It may also send messages, including spam, and conduct denial-of-service (DDoS) attacks.

Hacks, Exploits, and Exit Scams Decline in 2022

The year 2021 reached an all-time high in attempts to steal coins, including hackers using fake apps to drain wallets. However, according to recently released blockchain security data, hacks, code exploits, and exit scams reached a record low for 2022 last month.

The negative market developments have also taken their toll on the industry. In the aftermath of the collapse of major players such as crypto exchange FTX, Bafin issued a call in mid-December for global regulations ensuring better protection for consumers in the space.

Do you expect malware attacks like "Godfather" to increase in the future? Please post your comments.