BlockFi, a popular cryptocurrency lending platform, informed its customers on Tuesday that it had a “temporary” data breach, according to Finance Magnates. The breach happened on May 14 and lasted for over an hour before the root cause of the unauthorized intrusion was found and it was stopped, putting some client’s data at risk. However, the platform also stressed that no critical customer data – or funds – were compromised.
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This breach emphasises the importance of improving two factor authentication and removing the SMS one time password option altogether. Most crypto currencies only offer authenticator apps as a second verification, but accessing financial data needs to be as secure as possible throughout the entire process.
Sim swap hacks are rising in numbers and they are simple for hackers to carry out. However, it is just as simple to turn off SMS OTPs, which makes the hack frustrating.
Crypto currencies are regular targets due to the obvious potential rewards, so the upmost security is vital. Most clear defences will be in place, however, when you throw enough water at something, the cracks will soon become clear.