Cryptocurrency Giants Hit by Daring Data Breach: Unraveling the SIM-Swapping Attack! |August 29,2023
Channel: Hacking Space Frontier 
Date: 30/08/2023

A recent data breach impacting prominent cryptocurrency platforms has been traced back to a SIM-swapping attack targeting an employee at Kroll, a financial services company hired to assist struggling exchanges. Bankrupt crypto platforms FTX, BlockFi, and Genesis, all utilizing Kroll's services to manage claims after their collapses, were informed of data breaches affecting their customers. Kroll confirmed the breach, stating that on August 19, a hacker executed a sophisticated SIM-swapping attack on an employee's T-Mobile account. This attack involved the hacker posing as the employee to transfer the phone number to a new SIM card. Consequently, the threat actor gained access to sensitive files containing personal information of bankruptcy claimants from the affected cryptocurrency companies. Kroll promptly secured the compromised accounts and notified the affected individuals. The FBI is investigating the incident. Although Kroll assured that no other systems or accounts were impacted, they, along with the affected crypto platforms, cautioned users about potential phishing attempts asking for crypto wallet details and personal information. The prevalence of SIM-swapping attacks has increased with the growing use of two-factor authentication, resulting in substantial financial losses. Recently, the U.S. Department of Homeland Security recommended transitioning away from SMS and voice-based authentication methods to more secure passwordless solutions following a series of high-profile cyberattacks.