Episode Transcript
A what's going on?
It's dexter.
So we're doing something a little different this week.
While our team is away for the holiday, We're going to bring you an episode of a podcast called click here.
It's produced by our friends that recorded Future News and PRX, and it's all about the people who are making and breaking our digital world.
Today's episode follows a hacking group called Elusive Comet.
They don't rely on zero days or ransomware.
They just use charm and zoom to fall into their trap.
You don't need to be reckless, just polite.
Here's Dina temple Rastin, the host of click Here, with the story.
Speaker 2Jake Gallen used to work behind the velvet ropes in Las Vegas.
Among other things, he worked the cabanos at Planet Hollywood and for a while he thought that life sparkled.
Speaker 3You know, it's funny because when I was going to UNLV, I was in a fraternity there, and you'd say, yeah, you know, I would love to have a nightclub job because I can continue this type of lifestyle.
Speaker 2But it got a little old once you get.
Speaker 4Into that lifestyle.
After about a year, you're like, man, this kind of sucks.
Speaker 2It wasn't just that he was awake when the rest of his friends were asleep, or that he missed all kinds of milestones in other people's lives.
It was just kind of lonely, and he worried that he'd never find something as exciting where he'd be making that kind of money until one day he was on a Reddit forum and found Ethereum, the cryptocurrency.
Speaker 3So I found Ethereum in twenty sixteen on a Reddit forum called Wall Street Bets.
Speaker 2To Jake, trading ethereum, the second largest cryptocurrency after Bitcoin, felt like opening a secret door into a whole new world, one that was intoxicating, unpredictable, and full of promise.
Speaker 3I was very fascinated by this idea of how it kind of strips power away from a lot of the central authorities, and for me, I was very certain that this was going to be the industry that changes the world.
Speaker 4I still have that.
Speaker 2Believer, and like so many true believers, he didn't want to just watch from the sidelines.
So we started training crypto and then he stumbled into the world of NFTs that short for non fungible tokens.
There are blockchain based collectibles, think beanie babies, but with code, and before long he'd carved out a reputation in one of the strangest corners of the NFT universe, a niche known as historical NFTs.
Think of them as relics, pixelated artifacts from Crypto's adolescence.
Speaker 4So's one of the largest Mooncat collectors at the time.
Speaker 2Mooncats primitive, quirky, little pixelated pictures of cats and among the very first NFTs ever minted.
Speaker 3And I said that I had some that I was interested in auctioning off.
Speaker 2They were valuable, a kind of Mickey Mental Rookie card of the blockchain.
This wasn't an obvious career choice for a health science major, but Jake understood collectibles in a kind of visceral way because he'd lived it.
Speaker 3I had actually owned an antique store in Vegas with my father.
That was my first business, and so we are very knowledgeable in this world of like antiquities and collectibles.
Speaker 2Which is probably why Southeby's came calling.
Yes, that's Southeby's the one that sells Van Goes.
Speaker 3Six Sasi painting by Vassin Vngeur sendor Remo Marte.
Speaker 1Painted in eighty eighty seven.
Speaker 2And they asked him if you wanted to participate in their second ever NFT auction.
It was a huge deal.
One of the world's oldest auction houses was now moving into digital.
Speaker 3Ward eleven million, two d and fifty thousand euros adiuge.
Speaker 2And just like that, Jake was suddenly orbiting Crypto Royalty, rubbing elbows with celebrities like Steve Aoki and Paris Hilton.
He was hosting panels, being interviewed live streaming, He started a podcast, and his profile exploded.
And in the middle of all this, he made an unusual decision.
In the crypto world, everyone hides, they use avatars or fake names VPNs on top of VPNs, that's the culture, anonymous, encrypted and untouchable.
But not Jake Gallon.
He in essence doxed himself.
Speaker 3Since I started in twenty seventeen, you know, being a docs person was unheard of.
Speaker 4That was like a very rare thing to do.
Speaker 2He used his real name, told people what he owned, where he worked, what he bought into.
He thought the transparency would help him earn trust, so he leaned into it.
Speaker 3You know, well, obviously it makes you a target, but it also makes you a little bit more respectable and it leads, in my opinion, to more opportunities.
Speaker 2That openness got him noticed.
He started getting nonstock media requests three, five, sometimes eight interviews a week, so when a show called Tactical Investing reached out in April, it was just another thing he had to fit in into his schedule.
Speaker 3The message was like, hey, you know doing a cohort of individuals with leaders in the industry for my channel.
Would love to interview you.
So I respond and say, hey man, sure, yeah, I'd love to.
Speaker 2A week later, he logged onto zoom ready for his interview.
But this was not just any interview, this was a trap.
I'm Dina Templewrestent and this is click here, a podcast about all things cyber and intelligence.
We tell true stories about the people making and breaking our digital world today.
We're used to watching for a shady link, a sketchy email, a too good to be true promise.
But what if danger comes wrapped in something ordinary, A zoom call, a friendly face, a simple request.
You don't need to be careless, just courteous.
Stay with us.
From Record of Future News, This is click Here.
Jake Gallon had always known that.
Deciding to use his real name publicly and talking so openly about his life would be a risk, so he made sure his security was air tight.
Speaker 4I generally consider myself to be very careful.
I mean I have.
Speaker 3Maybe five to ten different hardware wallets with different assets.
On top of it, multiple computers which hold different types of wallets.
Speaker 2So anytime he got an interview request, he would vet them thoroughly.
And that's exactly what he did in April when he got an interview request from a YouTube show.
He'd never heard of something called Tactical Investing.
Did they have mutual followers?
Check history of posts with the original check check a show that appears to be a real show.
Speaker 4Hey, guys, what is up?
It is Alexander here back with Tactical Investing, and in today's video, I want to do a step by step staking.
Speaker 3The YouTube channel had close to one hundred thousand subscribers, had like six years of posting history.
I had interviews with people that I'm familiar with in the industry, and had a bunch of recent posts, posting videos every few days or so.
Speaker 2So we said yes, and he was excited.
By this point.
He was CEO of a crypto company and they had a new product.
He wanted to demo.
So the day of the interview, he logged on and it started like so many interviews before it, but the host had his camera off.
Speaker 3So when we get on the interview, he has his screen off, and he says, do you mind that I'm going to keep my screen off?
Speaker 2Why wouldn't he want his camera on?
He was a YouTuber after all, That alone set off a flicker of doubt in Jake's mind, but just a flicker.
Speaker 3This industry is, you know, it's full of pseudononymous and anonymous people.
Speaker 4But what was weird is that he's a YouTuber.
Speaker 2But then the guy kept talking.
He sounded confident, casual, and Jake he let the flicker fade.
Speaker 3So I'd actually watched a handful of his interviews, you kind of understand who this person is, or like what their interview style is like.
It sounds just like him, literally just like him.
Speaker 2And pretty quickly he wasn't just feeling relaxed, he was feeling kind of impressed.
The questions were smart, technical.
The interviewer clearly understood Emblem Vault, the crypto company that Jake was running.
Speaker 3What he was asking me actually was was kind of nuanced, questions about emblem vault, which to understand what elmbum vault is, you have to be pretty deep into the industry.
Speaker 2So what any founder would do when somebody really gets it, he let his guard down.
Speaker 3And so after about thirty or forty minutes into the interview, the gentleman says, okay, I would love for you to demo Agent Hustle.
Speaker 2Agent Hustle not a nineteen seventies crime show, but an AI tool for tracing blockchain activity.
And Jake was really proud of it.
So when the interviewer said he'd give Jake access to share his screen, he just clicked shared his screen and walked the interviewer through the tool.
When the call ended, Jake thought it had gone pretty well.
Speaker 3I tell him, hey, he is a great interview.
He asked the right questions, and he says he'll be up in a few days, and then that's it.
Speaker 4Everything is fine.
Speaker 2But everything was not fine.
It started the next day Jake got a notification that a Mooncat NFT that he'd bought for one hundred thousand dollars was suddenly sold at the bargain basement price of one thousand dollars.
Speaker 4And then I see another sale happen.
Speaker 3I get another notification from open Sea saying that another sales happened, very.
Speaker 2Low ball, and his heart started to raise.
Speaker 4And I know there's a hack that's happening.
I don't know how or what or why.
Speaker 2He scrambled change passwords, reached for every security switch he knew.
Speaker 3Just minimizing the blast radius of what was going on, trying to figure out what was happening.
Speaker 2And then came the moment everyone dreads.
He was logged out of his email, his social media, and every time he tried to regain control, the hacker just kicked him right back out.
It was like whack a mole with his life.
He tried to revoke permissions on revoke cash no.
Speaker 3Look, and I could see more Mooncats being listed, and then I see other collections being listed.
Speaker 2And then a chilling realization.
Speaker 3Oh fuck, this is like a full on like somebody has my seat phrase.
Speaker 2Seed phrase like a master key to all of his wallets and NFTs.
Speaker 4Which is crazy because I've never written that seed phrase down anywhere nowhere digitally.
It's written down on a piece of paper inside of a save.
Speaker 2That's when it clicked.
Breaking into his computer was as good as breaking into his safe.
How much did you lose?
Speaker 3It's about between one hundred and fifty to two hundred thousand, depending on how you value the assets themselves.
Speaker 2Jake was gutted and pretty confused.
Who would do this and how?
His gut told him that this had to be connected to that interview.
But what kind of hacker launches a YouTube channel and runs it for six years just so they can scam someone.
None of it made sense, so he called nine one one, actually SEAL nine one one.
Speaker 5The official name is Open Security Alliance, but everybody just says SEAL.
Speaker 2There were a team of white hat hackers who respond to crypto attacks.
Speaker 5We do everything from people who got fished for one thousand dollars to kidnappings to big North Korean heists.
There's all sorts of crazy things.
Whatever people need, we'll figure out a way to do it.
Speaker 2When we come back, the SEAL team gets to work, the FBI steps in, and the real host of Tactical Investing sends a very unexpected message, stay with us.
Nick Box is an incident responder at SEAL, and they've worked on thousands of crypto hacking cases like Jakes.
Speaker 5Yeah, it's just you know, we're always on call.
Some days are a lot worse than others.
Yesterday I woke up and it felt like every single threat actor we were looking at had decided to do something at the exact same time.
Fridays are worse.
I think a lot of hackers know that if they start hacking on Friday, the FEDS won't get involved until Monday.
Speaker 2Nick didn't waste any time trying to get to the bottom of what happened.
Speaker 5First thing we do in triage is give them a set of instructions to follow.
Speaker 3Apparently phrasing you're supposed to actually is unplug your computer from the Internet.
Speaker 5Disconnect your computer from the Internet.
Speaker 3I wish I would have knowne that probably would have saved myself a lot, a lot of money.
Speaker 2Then came the forensic work, retracing every click, and as they dug Nick Spidey sense started tingling he'd seen something like this before.
Speaker 5Yeah, you know, as soon as we heard he suspected a zoom call, we immediately start to think it's DPRK.
Speaker 2DPRK North Korea the most prolific crypto thieves on the planet, and they've been using Zoom too.
Traders and even crypto companies with fake job interviews and investor.
Speaker 5Calls, and they play a video of a person that might be the person you're supposed to be meeting with, and they look bored and they're not talking, but it's actually a loop of a video, and then they tell you over text that there's trouble with the audio.
And then they write, oh, we've seen this problem before.
Speaker 2Just go to this link, a link to malware.
But Jake didn't click on anything like that.
There was no fake video.
He just had a conversation one he thought was a pretty good one.
Speaker 5The fake interview was new.
We hadn't seen this vector before.
We realized it probably wasn't North Korea.
Speaker 2So the team went back to the drawing board.
They went over everything again and that's when they caught it.
Speaker 5They kept trying to get him to screen share.
Speaker 2The screen share that Jake used to demo agent hustle.
And while there are lots of things you can do to protect yourself from a hack, antivirus software, avoid spamy leaks, there's one thing that's as hard to see coming as it is easy to fall for social engineering hackers exploiting somebody's humanity, their ego, their enthusiasm, their fears.
When it came time to demo his project, Jake was enthusiastic.
They just launched this new AI tool and he wanted everyone to know about it, so he wasn't quite as focused as he went through the screenshare process.
Speaker 5They had a Zoom account where the name on the account was Zoom, and then they requested remote control and a notification pops up on Zoom that says something like Zoom is requesting permission or remotely controller device.
Speaker 2In that moment, it didn't look like a red flag.
It just looked like part of the process.
Speaker 5People just think it's requesting permission to share my screen, but it's actually requesting permission to remotely control your desktop.
Speaker 2Jake barely remembers clicking, which is exactly how the best hacks work.
Speaker 5When you do get hacked, it's like a magic trick, like an illusion.
It's like when someone pulls a coin from behind my ear.
They didn't really make a coin appear.
They used a sleight of hand and tricked me.
Speaker 2And with that the hackers had everything remote access files, passwords, wallets.
Speaker 5Once you get you know, remote code execution on someone's computer, you can do a lot.
You can look for all of the high value targets, private keys, SSH keys, access tokens, whatever.
Then they'll get your password manager.
They'll try and take over your Twitter account and your Telegram account.
Speaker 2The Seal team had a hunch maybe this wasn't North Korea, maybe this was someone borrowing from their playbook.
Speaker 5It was actually a group of Western people, a US or Europe or North America based hackers who had had a clever method and were using it a lot.
Speaker 2A method that appeared to be piggybacking on North Korea's mo.
Speaker 5We have seen people try to imitate North Korean tactics, and I think what happened is they heard about this video chat zoom call vector and thought, oh, that sounds like a good idea.
We can modify that to fit to our strengths.
Speaker 2Maybe they even thought that looking like they were North Korean hackers would help them get away with it whatever it was.
Seal wrote about the group and in their report they called them elusive comment.
Speaker 5I don't know if they think we'll just give up because we know that they're beyond the reach of law enforcement or what.
But it's actually the exact opposite of what you should do because there are a lot of federal resources that focus completely on North Korea.
So it's not in your interest if you're a hacker to have them think you're North Korea.
Despite what some people might think.
Speaker 2The FBI is now investigating.
Jake says they reached out not long after he reported the attack and gave him even more detail.
Speaker 3This is a very large scammering that's going on that could total potentially, you know, eight or maybe nine figures and lost to value, and they're all using zim apparently for all of this.
Speaker 2But the FBI wasn't the only one who reached out.
Speaker 6Heyjake, it's Alex.
Otherwise is known as Tactical Investing.
My account was compromised Wednesday of last week.
Speaker 2Tactical Investing is a real YouTube channel run by a real person, Alex Banister.
He's in the Air Force, and to prove who he was, he sent Jake a video of himself in uniform, you know.
Speaker 6For proof I'm in the military.
There's my uniform Air Force and then my last name is Banister.
I'm check it out here.
It's on my uniform.
Speaker 2So the hackers hadn't just fooled Jake they'd hijacked someone else's identity to trick him.
Jake lost a lot that day time money trust.
But what bothers him most is Zoom.
That remote access button that Jake was tricked in depressing, it's not some obscure setting.
It's enabled by default for all personal Zoom accounts.
If you use Zoom, it's probably enabled on your computer right now.
Speaker 3Basically, the whole scam is that if you're a host of a Zoom interview, you can request remote access to the guests.
This is like a default feature that's on.
Like, if you turn that default feature off, this whole thing goes away.
It's literally that simple.
Speaker 2We reached out to Zoom and they told us they take security seriously and that users must give explicit consent before allowing anyone to take control of their screen, which is technically true, but cybersecurity experts say that's not the point.
While no one would be hurt, if Zoom just turned it off from a default setting, it could save unsuspecting victims a lot of time money in hassle.
Speaker 3If they just did, they could easily fix the side just making remote access default off, Like that's literally all they have to do to fix it, but they don't seem to be interested in wanting to make that change.
Speaker 2Jake says he's spoken with people at Zoom.
He's even heard their CEO was made aware of his case, but so far nothing's changed.
So Jake's doing the only thing he can, the only thing he's been doing since he first stumbled into the crypto spotlight.
He's talking about his life and telling people what happened to him, Journalists, crypto traders, Twitter followers, anyone who will listen.
Speaker 3Yeah, it is embarrassing, but I felt like there's it's much more important to keep people protected, to ensure that this doesn't happen again and again and again.
You know, do I want to be the face of this, No, not really, But do I want people to be aware of what's going on?
Speaker 4Yeah?
Absolutely?
Speaker 2This is quick Here.
Speaker 1That was Dina temple Rastin, host and managing editor of the click Here podcast from Record of Future News and PRX.
The show tells true stories about the people making and breaking our digital world.
New episodes come out every Tuesday and Friday.
You can find click Here wherever you get your podcasts, and starting in twenty twenty six, on selected public radio stations will put a link to the podcast in the show notes.
Thank you for listening to kill Switch, and we'll be back in the new year with new episodes.
