1. Home
  2. Data breach

Data breach

Bank of America Suffers Massive Data Breach, Exposing Social Security Numbers, Addresses and Additional Sensitive Data To Hackers

Bank of America Suffers Massive Data Breach, Exposing Social Security Numbers, Addresses and Additional Sensitive Data To Hackers

Tens of thousands of Bank of America customers are now at risk of being targeted for identity fraud after a massive security failure exposed their critical personal information. A data breach notification filed in Maine says 57,028 customers at Bank of America were exposed due to a failure at Infosys McCamish Systems (IMS), an insurance […]

The post Bank of America Suffers Massive Data Breach, Exposing Social Security Numbers, Addresses and Additional Sensitive Data To Hackers appeared first on The Daily Hodl.

Russia Cautious on Tokenizing Real-World Assets

Hackers claim to have stolen user data from defunct crypto ATM firm Coin Cloud

The hackers say they have nabbed the data of about 300,000 users of Coin Cloud residing in the United States and Brazil.

An anonymous group of hackers claims to have stolen personal information for about 300,000 customers of the Bitcoin (BTC) ATM company called Coin Cloud, the pseudonymous cybersecurity account Vx-underground posted on X (formerly Twitter).

Apart from personal information, the hacker group also claims to have gotten a hold of 70,000 customer selfie verification data. According to Vx-underground, the hackers claim to have obtained details such as occupations, physical addresses, social security numbers and other data from the company. The hackers also reportedly have the data of United States residents and users from Brazil.

Furthermore, the hacker group reportedly claimed to have accessed the source code for Coin Cloud’s back end. At the time of writing, the company has not yet posted an official statement regarding the hack.

Cointelegraph reached out to Coin Cloud and Vx-underground for additional comments but did not get an immediate response.

Related: Poloniex exchange suffers $100M exploit, offers 5% bounty

Earlier this year, the crypto ATM operator filed for bankruptcy. On Feb. 8, Coin Cloud announced that it would file for Chapter 11 reorganization in a United States bankruptcy court. According to its CEO and president, Chris McAlary, the decision will let them rework their debt and protect the interests of their creditors. A filing on Feb. 7 showed that the company had liabilities between $100 million and $500 million while only having assets between $50 million and $100 million.

Magazine: Exclusive: 2 years after John McAfee’s death, widow Janice is broke and needs answers

Russia Cautious on Tokenizing Real-World Assets

The anatomy of a cyberattack

Explore the inner workings of a cyberattack, and understand its stages and techniques to strengthen cybersecurity defenses.

Cyberattacks have emerged as a serious threat to people, organizations and governments in today’s digitally connected world. A cyberattack is a malicious attempt to exploit vulnerabilities in computer systems, networks or software for nefarious purposes. Understanding the anatomy of a cyberattack is essential for individuals, businesses and governments to develop effective cybersecurity strategies.

To shed light on the changing environment of cyber threats, this article will discuss the essential elements of a cyberattack, and the stages involved in phishing and ransomware attacks.

The stages involved in a cyberattack

Reconnaissance

The attackers gather data on the target during the reconnaissance phase. To find potential vulnerabilities, targets, and important assets, they employ a variety of tactics and engage in active or passive reconnaissance.

Active reconnaissance involves scanning networks for prospective access points, whereas passive reconnaissance in a cyberattack involves gathering information about the target without directly engaging with its systems or networks.

Weaponization

Once the attackers have located their targets and weak points, they weaponize the attack by writing malicious code or taking advantage of already-known weaknesses. This frequently entails developing malware that can harm or gain illegal access to the target system, such as viruses, trojans, or ransomware.

Related: Top 7 cybersecurity jobs in high demand

Delivery

The malicious payload must now be delivered to the target. Attackers employ a variety of techniques to infect unsuspecting victims with malware, including phishing emails, harmful links, infected attachments and watering hole assaults.

Exploitation

During this phase, attackers use the flaws in the target network or system to obtain unauthorized access. They use security flaws, unpatched software or shoddy authentication procedures to access the target.

Installation

Once the attackers have access to the target system, they install the virus to keep it persistent and under their control. They can also increase their credentials to get more advanced and lateral network access.

Command and control

Attackers create a command and control infrastructure to keep in touch with the compromised systems. This is known as command and control (C2). This enables them to communicate, exfiltrate information and covertly carry out their nefarious actions.

Actions on objective

After seizing control of the target system, attackers move on to completing their primary goals. This might entail data theft, data alteration, requests for ransom or the launch of additional assaults against different targets.

Covering tracks

To prevent detection and keep their foothold, attackers hide their existence in the compromised systems by deleting logs, wiping out evidence of their activity and disguising their presence in the logs.

Understanding the anatomy of a phishing attack

A phishing attack is a type of cyberattack in which attackers use social engineering techniques to deceive individuals or organizations into divulging sensitive information, such as login credentials, financial details, or personal data.

For instance, an attacker can remotely control an infected computer by installing remote access trojans (RATs). After deploying the RAT on a compromised system, the attacker can send commands to the RAT and retrieve data in response.

The attackers often impersonate trusted entities, such as banks, online services or colleagues, to gain the victim’s trust and manipulate them into taking specific actions that compromise their security. The stages involved in a phishing attack include:

  • Reconnaissance: Attackers research and identify potential targets — often through social engineering or web scraping — to collect email addresses and personal information.
  • Weaponization: Cybercriminals craft deceptive emails containing malicious links or attachments designed to look legitimate, enticing victims into clicking or downloading them.
  • Delivery: Phishing emails are sent to the targeted individuals or organizations, tricking them into opening malicious links or attachments.
  • Exploitation: When victims click on malicious links or open infected attachments, the attackers gain unauthorized access to their systems or harvest sensitive information.
  • Installation: The attackers may install malware on the victim’s device, such as keyloggers or spyware, to steal credentials and monitor activities.
  • C2: The attackers maintain communication with the compromised systems, enabling them to control the malware remotely.
  • Actions on objective: Cybercriminals may use stolen credentials for financial fraud, gain unauthorized access to sensitive data, or even launch further attacks against other targets.
  • Covering tracks: After achieving their objectives, attackers may attempt to erase evidence of the phishing attack to avoid detection.

Related: Top 7 Wall Street movies you must watch

Understanding the anatomy of a ransomware attack

A ransomware attack is a type of cyberattack in which malicious software, known as ransomware, is deployed to encrypt a victim’s data or lock them out of their computer systems or files. The attackers demand a ransom payment from the victim to provide the decryption key or restore access to the encrypted data.

  • Reconnaissance: Attackers identify potential victims based on their vulnerabilities, often through automated scans of open ports and exposed services.
  • Weaponization: Cybercriminals package ransomware into malicious software that encrypts the victim’s data and demand a ransom for its release.
  • Delivery: The ransomware is delivered via various methods, such as infected email attachments or malicious websites.
  • Exploitation: Once the victim’s system is infected, the ransomware exploits software vulnerabilities to encrypt the files and render them inaccessible.
  • Installation: The ransomware gains persistence on the victim’s system, making it difficult to remove without the decryption key.
  • C2: Ransomware communicates with the attacker’s server to provide the decryption key after the ransom is paid.
  • Actions on objective: The objective is to extort the victim by demanding a ransom payment in exchange for the decryption key to recover the encrypted data.
  • Covering tracks: Ransomware attackers often cover their tracks by using encryption and anonymizing technologies to avoid detection.

Understanding the anatomy of a cyberattack is crucial to developing effective cybersecurity measures. By recognizing the stages involved in a cyberattack, individuals and organizations can proactively implement security controls, educate users about potential threats, and employ best practices to defend against the ever-evolving landscape of cyber threats. Cybersecurity is a collective responsibility, and with vigilance and proactive measures, one can mitigate the risks posed by cybercriminals.

Russia Cautious on Tokenizing Real-World Assets

Report: Crypto Exchange Gemini Suffers From Data Breach, 5.7 Million Emails Allegedly Leaked

Report: Crypto Exchange Gemini Suffers From Data Breach, 5.7 Million Emails Allegedly LeakedAccording to a recent report, the cryptocurrency exchange Gemini suffered from a breach of data and reportedly 5.7 million emails were leaked. While Gemini has stated “some Gemini customers have recently been the target of phishing campaigns,” the exchange insisted that “no Gemini account information or systems were impacted.” Gemini Suffers From ‘Third Party’ Associated […]

Russia Cautious on Tokenizing Real-World Assets

Equifax—known for huge data breach—is building a Web3 KYC solution

Equifax, which suffered a huge data breach in 2017, has partnered with privacy-centric blockchain company Oasis Labs for a decentralized ID offering for Web3 companies.

Credit reporting company Equifax, known for suffering from one of the largest customer data breaches to date, has partnered with blockchain company Oasis Labs to build a Know Your Customer (KYC) solution.

Equifax and Oasis said on Oct. 26 that the latter would be building a decentralized identity management and KYC solution for the industry on Oasis’ platform which will leverage Application Programming Interfaces (APIs) from Equifax to help with checks and user identification.

The announcement made no mention of the exact technology which will underpin this offering and Cointelegraph’s request for comment was not immediately responded to by either company.

Both firms believe there hasn’t been a KYC solution tailored to Web3 with “strong privacy protection” and their proposed offering is set to address this gap by issuing anonymized KYC credentials to individuals’ wallets.

This credential will be continuously updated according to the announcement and Oasis pledges its “privacy-preserving capabilities” will ensure data is processed in confidence whilst maintaining a trail on the company's blockchain.

Web3 firms offering similar solutions based around decentralized identity are Dock and Quadrata with each offering a product built around decentralized identity.

The partnership could have some Web3 natives concerned considering the significant data breach Equifax suffered in 2017. Around 163 million worldwide private records were compromised with 148 million being U.S. citizens making it the 13th largest data breach in U.S. history according to cybersecurity company UpGuard.

Related: Zero-knowledge KYC could solve the privacy vs compliance conundrum — VC partner

Attackers targeted a third-party web portal with a known vulnerability that was patched but Equifax had failed to update to the latest version, the hackers gained access to the firms' servers for around two and a half months all the while siphoning millions of records containing sensitive information.

It was reported that Equifax spent $1.4 billion on legal fees and strengthening its security posture following the incident. The U.S. Federal Trade Commission and Consumer Financial Protection Bureau issued a $700 million fine in July 2019 which the firm settled.

Russia Cautious on Tokenizing Real-World Assets

Phishing risks escalate as Celsius confirms client emails leaked

It is not the first time Celsius' customer emails have been exploited and leaked online.

Celsius depositors should be on the lookout for phishing scams after the company revealed some of its customer data has been leaked in a third-party data breach. 

On July 26, Celsius sent an email to its customers informing them that a list of their emails had been leaked by an employee of one of its business data management and messaging vendors.

According to Celsius, the breach came from an engineer at the Customer.io messaging platform who leaked the data to a third-party bad actor.

“We were recently informed by our vendor Customer.io that one of their employees accessed a list of Celsius client email addresses,” said Celsius in its email to customers. The data breach is part of the same incursion that leaked OpenSea customer email addresses in June.

Celsius has however played down the incident stating that it did not “present any high risks to our clients,” adding that they just wanted users to “be aware.”

On July 7, Customer.io wrote in a blog post that “We know this was a result of the deliberate actions of a senior engineer who had an appropriate level of access to perform their duties and provided these email addresses to the bad actor.” The employee has since been terminated.

The number of emails leaked was not disclosed, nor was the platform to which they were leaked.

However, the crypto community has started to warn Celsius users of phishing attacks which usually follow an email data breach.

Phishing is a form of social engineering in which targeted emails are sent to lure victims into revealing more personal data or clicking links to malicious websites that installs malware to steal or mine crypto.

A similar data breach in April 2021, saw Celsius customers reportedly targeted by a fraudulent website claiming to be the official Celsius platform. Some received SMS and emails prompting them to reveal personal information and seed phrases.

At the time, the company reported that hackers had gained access to a third-party email distribution system it uses.

Related: Email server breach sees Celsians targeted by phishing attacks

Perhaps the most famous crypto data breach was from hardware wallet provider Ledger, which had its servers hacked in 2020. The spewing of thousands of customers’ personal details on the internet resulted in untold losses and even physical threats for many victims, yet the company has refused to compensate them.

Celsius email to customers on July 26.

Russia Cautious on Tokenizing Real-World Assets

Shopify facing another lawsuit from crypto holders over Ledger data breach

The e-commerce giant is in the hot seat again for its alleged role in making the hacked Ledger user data available to malicious actors.

Global e-commerce platform Shopify and hardware wallet maker Ledger face a major legal hurdle as a group of Ledger users have filed a class-action lawsuit for its part in failing to prevent a massive data breach in 2020.

The suit was filed in the U.S. District Court of Delaware on Apr. 1 and alleges that Shopify “repeatedly and profoundly failed to protect its customers’ identities.”

Shopify and its third-party data consultant TaskUs are being held responsible by complainants for leaking personally identifiable information (PII) of Ledger buyers despite marketing promises assuring the full security of the Shopify platform.

The plaintiffs claim Shopify and TaskUs were aware of the data breach for over a week before notifying customers. They are asking for the exact type of information leaked to be disclosed by Ledger and Shopify and for a monetary reward that covers actual and punitive damages.

A class action suit has been filed against Shopify and Ledger.

France-based Ledger is also included as a defendant in the case for its marketing claims promising customer security. The complaint states that Ledger “initially denied that any compromise of PII had occurred,” but later had to backtrack and refer to the leak and to Shopify in an email notification. The complaint stated:

"Despite the repeated promises and worldwide advertising campaign touting unmatched security for its customers, Ledger—and its data processing vendors, Shopify and TaskUs—repeatedly and profoundly failed to protect its customers’ identities, causing targeted attacks on thousands of customers’ crypto-assets and causing Class members to receive far less security than they thought they had purchased with their Ledger Wallets."

Hardware wallets, otherwise known as cold wallets, are physical devices that provide crypto users with added security for their private keys and seed phrases. They are marketed to be more secure than hot wallets.

As the complaint alleges, Ledger used Shopify to run its website’s online store. As a result of that relationship, Shopify had direct access to the PII of customers on Ledger’s database. Shopify uses TaskUs to provide customer support services, and therefore it also had access to Ledger’s customer data.

Hackers made off with personal information from about 272,000 Ledger users and over 1 million email subscribers to Ledger’s newsletter in 2020. A massive phishing and intimidation campaign targeting Ledger owners followed resulting in some victims losing crypto assets.

Related: Ledger partners with The Sandbox to promote crypto education in the metaverse

This is not the first class-action suit filed against both Ledger and Shopify regarding the data breach. In April 2021, a different group of complainants filed suit in California. That complaint made allegations similar to the recent Delaware filing that Shopify and Ledger “negligently allowed, recklessly ignored, and then intentionally sought to cover up.”

On April 2, hardware wallet maker Trezor was the subject of a phishing attack that targeted its users through the MailChimp marketing service provider. On April 3, Trezor confirmed in a tweet that there had been a data breach. The company warned users that it would stop communicating via the newsletter, and had shut down three of its domains.

Russia Cautious on Tokenizing Real-World Assets