- Binance and Kraken fended off social engineering attacks.
- The attackers connived with insiders, just like in the recent Coinbase hack.
- Crypto platforms and users need to step up security.
Cryptocurrency exchanges Binance and Kraken have successfully thwarted efforts by hackers to illicitly acquire users’ data from their respective platforms. This incident happened a few days right after Coinbase Global placed a $20 million bounty on cyber criminals who connived with insiders to hack its platform and retrieved data affecting less than 1% of its users.
According to reports, the crypto exchanges foiled the attempts, ensuring the hackers did not gain access to sensitive users’ data. Although Binance and Kraken representatives haven’t commented on the development, there are no confirmations whether the hackers are the same group behind the recent Coinbase attack.
Hackers Employ Social Engineering for Data Theft, Impersonation, and Blackmail
Crypto companies and market participants are prime targets of hackers engaging in social engineering. Cybercriminals tend to steal users’ data, which they can manipulate negatively to gain dirty value.
For instance, some cybercriminals deploy stolen users’ data for impersonation over the internet to steal their funds from financial platforms. Others use the stolen data for blackmail, as seen in the recent attempt against Coinbase when the data thieves threatened to sell the stolen data to their fellow bad actors.
Related: Coinbase Data Breach: Brian Armstrong Offers $20 Million Bounty for Intel on Attackers
Rising Hacker Activity Correlates with Crypto Market Volatility and Bull Cycles
Notably, the successive attempts on crypto exchanges highlight a developing trend from hackers, reigniting some of the negative scenarios occurring during heightened crypto market volatility.
Historical trends reveal that hackers increase their activities during bull cycles when many users drop their guards after being carried away by price movements and potential profits.
Urgent Need for Enhanced Crypto Security and Vigilance
The development calls for improved security consciousness among crypto platforms and users, considering the reintroduction of market volatility and surging cryptocurrency value. The latest trend targeting insiders and crypto exchange employees calls for increased security on the platforms’ side.
Related: SHIB’s Recovery Rally Faces Critical Test as Hackers Offload 150 Billion SHIB
Crypto exchanges need to scrutinize their employees, especially the overseas employees who work semi-independently, to ensure they do not conspire with hackers to put customers at risk.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
