India warns AI-assisted hackers are stealing crypto wallet keys

India warns AI-assisted hackers are stealing crypto wallet keys

Summary

India’s CERT-In warned that the CRAFTY FALCON campaign is targeting financial institutions, including crypto exchanges and virtual asset providers. It reports stolen wallet keys and drained crypto funds but names no victims or losses. Attacks exploit exposed testing environments, shared credentials, cloud management tools, modified apps and payment APIs, sometimes using tiny test transfers before larger transactions. CERT-In says attackers have re-targeted firms after incomplete remediation, often during weekends and holidays, and assesses that AI tools helped adapt scripts and payloads. It urges continuous monitoring, verified eradication and threat hunting, stronger API authentication, separation of testing and production systems, tighter cloud privileges, and hardware or cold storage, multisignature withdrawals and anomaly monitoring for crypto providers.