Crypto Exchange Bitfinex Hit By ‘Minor’ Phishing Attack
In an advanced report, the Hong Kong-based crypto exchange Bitfinex confirmed a phishing attack. The report demonstrated that one of Bitfinex’s officials fell for the hacker’s trap. The offshore crypto exchange described the security breach as a minor issue that occurred at the beginning of this week.
Bitfinex Customer Support Staff Suffer a Phishing Attack
In a November 4 statement, the Bitfinex team detailed the nature and severity of the phishing attack. After analyzing the situation, the Bitfinex team confirmed that the phishing attack had less damage.
It implies the malicious attack was not severe compared to the 2016 major attack that resulted in the loss of 120,000 Bitcoin (BTC) worth around $70 million.
In the recent incident, the hackers accessed limited information on the customer’s support boards. Reports indicate the recent phishing attack granted the attacker unauthorized access to customer data on the support boards.
Occasionally, the Bitfinex customer relation team has normalized storing incomplete and old information on the support boards as a precautionary measure to shield the customer’s sensitive data.
Besides the preventive steps taken by Bitfinex in safeguarding the customer’s interest, the crypto exchange has restricted the staff from accessing some of the company’s proprietary tools.
Law Enforcers Supports Bitfinex to Convict the Hackers
Reports indicate that the Bitfinex customer who suffered from the phishing attack was not granted senior permission to access some of the software, including the customer’s supporting tools and other help desk tickets.
The revelation of the Bitfinex phishing attack has sparked speculation among crypto investors. On various social media platforms, Bitfinex customers expressed their concerns about the safety of their funds. A subsequent report from Bitfinex reveals the grim details of the attack.
Also, the crypto exchange underscored that despite one of the staff falling victim to the phishing attack, the bad players could not cause further damages that could compromise the Bitfinex system.
It implies that the hackers did not access the Bitfinex server, database, or wallet. Also, the Bitfinex team confirmed that despite the hackers attempting to compromise the system, there was no inherent risk to the customer’s funds.
The crypto exchange confirmed that it has invested in data protection to ensure that the customer’s details, including their passwords and private keys, were safe and secure. Irrespective of the preventive measures taken by Bitfinex to adhere to consumer protection laws, the crypto exchange admitted that hackers only accessed the dormant accounts.
Preventive Measures for Addressing Phishing Attacks
The report indicated that most of the affected user accounts have been inactive, with no traces of recent transactions. In the meantime, the Bitfinex team has prioritized resolving the matter.
News concerning the Bitfinex phishing attack has forced the company technical team and security expert to intensify their focus in probing the matter. The collaborative mechanism adopted by the Bitfinex team will involve a thorough review of the incident.
The team anticipates gathering substantial evidence concerning the phishing attack. Also, the crypto exchange plans to engage the affected customers to analyze the hacking incident.
The Bitfinex team has also engaged the law enforcers to bring down the bad actors. Reflecting on Bitfinex’s past turn of events, the crypto exchange has built a strong reputation for paralyzing the operation of entities and individuals seeking to weigh down the company’s operations.
Rise of Cyber-Related Crimes
Earlier, Bitfinex collaborated with US law enforcers, including the Department of Justice, to arrest the Russian emigre alleged to be the mastermind of the notorious 2016 attack.
Guided by the company code of conduct, the Bitfinex team has adopted practical strategies to ensure the crypto exchange’s daily operations conform to existing laws. These strategies involve standard operating procedures (SOPs), security measures, and monitoring and evaluation (M&E) policies.
A review of the security policies at Bitfinex demonstrates that the technical team has been mandated to regularly revise the security procedure to meet global standards and ensure the company assets are out of danger.
This exercise involves equipping the employees with relevant skills in cybersecurity. Occasionally, the Bitfinex team hosts cybersecurity workshops and seminars to ensure that company practices are up to date with emerging technologies.
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