Algorand Vulnerability Scanner

1. Purpose

Systematically scan Algorand smart contracts (TEAL and PyTeal) for platform-specific security vulnerabilities documented in Trail of Bits' "Not So Smart Contracts" database. This skill encodes 11 critical vulnerability patterns unique to Algorand's transaction model.

2. When to Use This Skill

• Auditing Algorand smart contracts (stateful applications or smart signatures)

• Reviewing TEAL assembly or PyTeal code

• Pre-audit security assessment of Algorand projects

• Validating fixes for reported Algorand vulnerabilities

• Training team on Algorand-specific security patterns

3. Platform Detection

File Extensions & Indicators

• TEAL files: .teal

• PyTeal files: .py with PyTeal imports

Language/Framework Markers

# PyTeal indicators

from pyteal import *

from algosdk import *

# Common patterns

Txn, Gtxn, Global, InnerTxnBuilder

OnComplete, ApplicationCall, TxnType

@router.method, @Subroutine

Project Structure

• approval_program.py / clear_program.py

• contract.teal / signature.teal

• References to Algorand SDK or Beaker framework

Tool Support

• Tealer: Trail of Bits static analyzer for Algorand

• Installation: pip3 install tealer

• Usage: tealer contract.teal --detect all

4. How This Skill Works

When invoked, I will:

• Search your codebase for TEAL/PyTeal files

• Analyze each file for the 11 vulnerability patterns

• Report findings with file references and severity

• Provide fixes for each identified issue

• Run Tealer (if installed) for automated detection

5. Example Output

When vulnerabilities are found, you'll get a report like this:

=== ALGORAND VULNERABILITY SCAN RESULTS ===

Project: my-algorand-dapp

Files Scanned: 3 (.teal, .py)

Vulnerabilities Found: 2

---

[CRITICAL] Rekeying Attack

File: contracts/approval.py:45

Pattern: Missing RekeyTo validation

Code:

    If(Txn.type_enum() == TxnType.Payment,

        Seq([

            # Missing: Assert(Txn.rekey_to() == Global.zero_address())

            App.globalPut(Bytes("balance"), balance + Txn.amount()),

            Approve()

        ])

    )

Issue: The contract doesn't validate the RekeyTo field, allowing attackers

to change account authorization and bypass restrictions.

---

## 5. Vulnerability Patterns (11 Patterns)

I check for 11 critical vulnerability patterns unique to Algorand. For detailed detection patterns, code examples, mitigations, and testing strategies, see [VULNERABILITY_PATTERNS.md](resources/VULNERABILITY_PATTERNS.md).

### Pattern Summary:

1. **Rekeying Vulnerability** ⚠️ CRITICAL - Unchecked RekeyTo field

2. **Missing Transaction Verification** ⚠️ CRITICAL - No GroupSize/GroupIndex checks

3. **Group Transaction Manipulation** ⚠️ HIGH - Unsafe group transaction handling

4. **Asset Clawback Risk** ⚠️ HIGH - Missing clawback address checks

5. **Application State Manipulation** ⚠️ MEDIUM - Unsafe global/local state updates

6. **Asset Opt-In Missing** ⚠️ HIGH - No asset opt-in validation

7. **Minimum Balance Violation** ⚠️ MEDIUM - Account below minimum balance

8. **Close Remainder To Check** ⚠️ HIGH - Unchecked CloseRemainderTo field

9. **Application Clear State** ⚠️ MEDIUM - Unsafe clear state program

10. **Atomic Transaction Ordering** ⚠️ HIGH - Assuming transaction order

11. **Logic Signature Reuse** ⚠️ HIGH - Logic sigs without uniqueness constraints

For complete vulnerability patterns with code examples, see [VULNERABILITY_PATTERNS.md](resources/VULNERABILITY_PATTERNS.md).

## 5. Scanning Workflow

### Step 1: Platform Identification

1. Confirm file extensions (`.teal`, `.py`)

2. Identify framework (PyTeal, Beaker, pure TEAL)

3. Determine contract type (stateful application vs smart signature)

4. Locate approval and clear state programs

### Step 2: Static Analysis with Tealer

Run Tealer on contract

tealer contract.teal --detect all

Or specific detectors

tealer contract.teal --detect unprotected-rekey,group-size-check,update-application-check

### Step 3: Manual Vulnerability Sweep

For each of the 11 vulnerabilities above:

- Search for relevant transaction field usage

- Verify validation logic exists

- Check for bypass conditions

- Validate inner transaction handling

### Step 4: Transaction Field Validation Matrix

Create checklist for all transaction types used:

**Payment Transactions**:

-  RekeyTo validated

-  CloseRemainderTo validated

-  Fee validated (if smart signature)

**Asset Transfers**:

-  Asset ID validated

-  AssetCloseTo validated

-  RekeyTo validated

**Application Calls**:

-  OnComplete validated

-  Access controls enforced

-  Group size validated

**Inner Transactions**:

-  Fee explicitly set to 0

-  RekeyTo not user-controlled (Teal v6+)

-  All fields validated

### Step 5: Group Transaction Analysis

For atomic transaction groups:

- Validate `Global.group_size()` checks

- Review absolute vs relative indexing

- Check for replay protection (Lease field)

- Verify OnComplete fields for ApplicationCalls in group

### Step 6: Access Control Review

-  Creator/admin privileges properly enforced

-  Update/delete operations protected

-  Sensitive functions have authorization checks

## 6. Reporting Format

### Finding Template

[SEVERITY] Vulnerability Name (e.g., Missing RekeyTo Validation)

Location: contract.teal:45-50 or approval_program.py:withdraw()

Description:

The contract approves payment transactions without validating the RekeyTo field, allowing an attacker to rekey the account and bypass future authorization checks.

Vulnerable Code:

# approval_program.py, line 45

If(Txn.type_enum() == TxnType.Payment,

    Approve()  # Missing RekeyTo check

)

Attack Scenario:

• Attacker submits payment transaction with RekeyTo set to attacker's address

• Contract approves transaction without checking RekeyTo

• Account authorization is rekeyed to attacker

• Attacker gains full control of account

Recommendation:

Add explicit validation of the RekeyTo field:

If(And(

    Txn.type_enum() == TxnType.Payment,

    Txn.rekey_to() == Global.zero_address()

), Approve(), Reject())

References:

• building-secure-contracts/not-so-smart-contracts/algorand/rekeying

• Tealer detector: unprotected-rekey

---

## 7. Priority Guidelines

### Critical (Immediate Fix Required)

- Rekeying attacks

- CloseRemainderTo / AssetCloseTo issues

- Access control bypasses

### High (Fix Before Deployment)

- Unchecked transaction fees

- Asset ID validation issues

- Group size validation

- Clear state transaction checks

### Medium (Address in Audit)

- Inner transaction fee issues

- Time-based replay attacks

- DoS via asset opt-in

---

## 8. Testing Recommendations

### Unit Tests Required

- Test each vulnerability scenario with PoC exploit

- Verify fixes prevent exploitation

- Test edge cases (group size = 0, empty addresses, etc.)

### Tealer Integration

Add to CI/CD pipeline

tealer approval.teal --detect all --json > tealer-report.json

Fail build on critical findings

tealer approval.teal --detect all --fail-on critical,high