Improper Verification of Cryptographic Signature
Hyperledger Indy Node is the server portion of a distributed ledger purpose-built for decentralized identity. In Hyperledger Indy before version 1.12.4, there is lack of signature verification on a specific transaction which enables an attacker to make certain unauthorized alterations to the ledger. Updating a DID with a nym transaction will be written to the ledger if neither ROLE or VERKEY are being changed, regardless of sender. A malicious DID with no particular role can ask an update for another DID (but cannot modify its verkey or role). This is bad because 1) Any DID can write a nym transaction to the ledger (i.e., any DID can spam the ledger with nym transactions), 2) Any DID can change any other DID's alias, 3) The update transaction modifies the ledger metadata associated with a DID.
CWE-347 - Improper Verification of Cryptographic Signature
A cryptographic protocol is meant to ensure that services are provided in a secure manner. An application with absent or improper verification of cryptographic signatures allows malicious users to feed false messages to valid users or to disclose sensitive data, subverting the goals of the protocol. This can lead to security failures such as false authentication, account hijacking, and privilege escalation.