US government sanctions tech company involved in cyber scams

Summary

The U.S. government imposed sanctions on FUNNULL, a company accused of providing infrastructure for cybercriminals running so-called “pig butchering” crypto scams that have led to $200 million in losses for Americans victims. On Thursday, the Treasury’s Office of Foreign Assets Control announced the sanctions, saying FUNNULL is “linked to the majority of virtual currency investment scam websites reported to the FBI.” The press release said that the $200 million in losses results in an average loss of $150,000 per victim, but that the numbers “likely underestimate the total losses, as many victims of scams do not report the crime.” Pig butchering scams involve criminals approaching victims online, often pretending to be interested in a romantic relationship, with the goal of tricking the victims into sending them money to invest in non-existent crypto projects. According to the Treasury, FUNNULL is based in the Philippines and run by Chinese-national Liu Lizhi, who was also sanctioned on Thursday. FUNNULL, according to the Treasury, generated domain names for websites on IP addresses it owns, and provided “web design templates to cybercriminals.” “These services not only make it easier for cybercriminals to impersonate trusted brands when creating scam websites, but also allow them to quickly change to different domain names and IP addresses when legitimate providers attempt to take the websites down,” the Treasury said. The FBI released an alert including more information about these activities. The Treasury referred to the Polyfill supply chain attack in its press release, saying FUNNULL “purchased a repository of code used by web developers and maliciously altered the code to redirect visitors of legitimate websites to scam websites and online gambling sites, some of which are linked to Chinese criminal money laundering operations.” Those activities are exactly what researchers from cybersecurity firm Silent Push accused FUNNULL of carrying out last year. Research...