Binance, Kraken Thwarted Social Engineering Attacks Similar to Coinbase Hack

In a recent wave of cyber attacks, Binance and Kraken, two of the world's largest cryptocurrency exchanges, were targeted by hackers using tactics similar to those used against Coinbase in a major data breach earlier this week.

According to reports from Bloomberg, citing individuals familiar with the matter, attackers approached customer support agents at both exchanges with bribery offers, aiming to gain access to sensitive customer information. The hackers also provided detailed instructions on how to contact the attackers through Telegram, a popular messaging app.

This social engineering attack bears striking similarities to the one that led to a major data breach at Coinbase earlier this week. In that incident, hackers managed to bribe Coinbase's overseas employees and contractors to obtain customer information, leading to a $20 million ransom demand.

However, unlike Coinbase, Binance and Kraken were able to thwart these attempts without losing any customer data. The exchanges' internal systems, including artificial intelligence bots, helped detect bribery-related messages and shut down conversations before they escalated.

The success of Binance and Kraken's defenses can be attributed to their rigorous policies that limit access to customer data unless users initiate contact with the exchange. These measures helped mitigate risk and prevent potential breaches.

Coinbase, on the other hand, has revealed that it expects to pay between $180 million to $400 million in remediation costs and customer reimbursements after attackers gained access to their personal information. The company has also fired the staff involved and contacted law enforcement.

Francisco, a reporter for CoinDesk, notes that Coinbase reportedly started seeing unusual activity in January, with rival exchanges warning the company about suspicious activity targeting its largest clients last December.

The recent wave of cyber attacks highlights the importance of cybersecurity measures for cryptocurrency exchanges. As the use of cryptocurrencies continues to grow, so too does the risk of these types of attacks. It is essential that exchanges prioritize security and implement robust protocols to protect customer data.