Client Overview: Our client is an innovative company in the Web3 space, offering a decentralized platform for managing digital assets. Their platform allowed users to transfer cryptocurrencies, create wallets, and manage personal profiles. With the increasing popularity of decentralized finance (DeFi), the security of their platform was critical to protect users’ digital assets and private information.
Challenge: Given the sensitive nature of cryptocurrency transactions and wallet management, the client required an in-depth Vulnerability Assessment and Penetration Testing (VAPT) for their web application. They needed to identify and mitigate any potential vulnerabilities that could lead to devastating consequences such as account takeover, private key exposure, or unauthorized transactions. The goal was to secure the platform while ensuring user trust and maintaining the integrity of their decentralized infrastructure.
Our Approach: We employed a comprehensive approach to VAPT, tailored to the unique demands of a Web3 application. This included testing all major features such as coin transfers, wallet creation, and user profile management, with a particular focus on the secure handling of private keys and user data. To accomplish this, we utilized a combination of manual penetration testing and automated scanning tools like Burp Suite, along with specific blockchain security testing tools.
- Initial Reconnaissance and Analysis: Our team began by gaining an understanding of the underlying blockchain architecture and the Web3 APIs used for wallet and transaction management. This allowed us to identify critical points of interaction between the web application and the blockchain network, which could be potential targets for attackers.
- Automated and Manual Testing: Using a blend of automated vulnerability scanners and manual exploitation techniques, we conducted a thorough security audit of the web application. Our testing included wallet security checks, and API security tests to uncover flaws in transaction processing and cryptographic key management.
- Vulnerability Identification: During the assessment, we uncovered several critical and high-severity vulnerabilities, including:
- Account Takeover – Found in the user authentication and session management processes, enabling attackers to gain unauthorized access to user accounts. It was uncovered that on obtaining victim’s wallet address, attacker can send a forge request to the client application and login inside victim’s account. This wallet address can be obtained through blockchain explorer easily.
- Private Key Leakage – Detected where an insecure AI implementation exposed sensitive private keys to unauthorized parties. This was an Insecure Direct Object Reference Vulnerability (IDOR).
- User Information Leakage – Personal data was exposed due to improper access control on user profiles, putting sensitive user details at risk.
- Wallet Misconfigurations – Due to another Insecure Direct Object Reference (IDOR) vulnerability, it was possible for an attacker to retrieve other user’s wallet secret twelve words phrase and import their wallets. Once a victim’s wallet is imported, attacker can drain the entire wallet and steal all funds.
- Reporting and Collaboration for Remediation: All vulnerabilities were categorized based on their impact, with detailed explanations and proof-of-concept exploits provided to the client. The issues were presented in a comprehensive report, highlighting the severity and potential impact of each vulnerability. We worked closely with the client’s development and security teams to ensure a quick and effective resolution of all identified issues. Our recommendations focused on:
- Enhancing access control and session management to prevent account takeovers.
- Securing private key storage and usage to prevent leakage.
- Implementing strong access controls for user information and wallet management.
- Correcting misconfigurations and data protection for user profiles.
- Post-Remediation Testing: Once the client had applied the recommended fixes, we conducted a follow-up round of testing to ensure that all vulnerabilities were successfully mitigated. Our revalidation process confirmed that the critical issues, such as account takeover risks and wallet security flaws, had been resolved, significantly improving the platform’s security.
- Results: Through our detailed VAPT process, we helped the client identify and address several critical vulnerabilities that could have led to account takeovers, wallet hacks, and the exposure of sensitive information. As a result, the client was able to secure their platform, ensuring that users could safely manage their digital assets without the risk of unauthorized access or data leakage.
By assessing the security of their Web3 application, the client not only enhanced user trust but also positioned themselves as a secure and reliable player in the blockchain ecosystem. This case demonstrated the importance of early vulnerability detection and proactive security measures in safeguarding digital assets within the decentralized finance landscape.