Phishing attacks are becoming increasingly sophisticated, with crypto exchanges emerging as prime targets.
A series of recent hacks, including a massive $1.4 billion breach at Bybit, underscore the rising risks within the sector. In 2024 alone, $2.2 billion was stolen in such attacks. Among the victims, Coinbase is now grappling with a lawsuit over alleged data breaches, while simultaneously refusing to pay a $20 million ransom demand—offering the same amount as a bounty instead.
Coinbase’s Social Engineering Attack
Coinbase recently disclosed in an SEC filing that hackers successfully used social engineering tactics to trick offshore customer service agents into revealing access to user data and account details. The attackers reportedly offered bribes to employees. Although no funds, passwords, or private keys were compromised, the breach is expected to cost Coinbase up to $400 million, covering expenses such as reimbursements and remediation efforts. To assist in the investigation, Coinbase has offered a $20 million reward for information leading to the perpetrators.
Binance and Kraken Stay One Step Ahead
Phishing attempts also targeted Binance and Kraken using the same tactics. Hackers reached out to customer service representatives on Telegram, attempting to obtain sensitive information such as account balances and personal addresses. However, these exchanges were able to fend off the attacks before any data was leaked.
Why Binance and Kraken Remained Secure
The key difference between Coinbase’s experience and that of Binance and Kraken lies in their robust internal security systems. Both exchanges employed advanced AI tools that flagged the phishing attempts early, preventing any employees from divulging critical information. Their quick detection and response were crucial in avoiding potential data loss and protecting user privacy.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/crypto-exchanges-fight-back-against-rising-phishing-attacks/