3 Cryptocurrency Firms Suffer Data Breach After Kroll SIM Swapping Attack

August 28, 2023 TH Author headline,hacker,phone,data loss,fraud,password,cryptography

Three bankrupt cryptocurrency companies — FTX, BlockFi and Genesis — have suffered data breaches following a SIM swapping attack that targeted risk and financial advisory firm Kroll.

In a statement issued last week, Kroll said it had learned on August 19 that a threat actor had used SIM swapping to transfer an employee’s T-Mobile phone number to a SIM card controlled by the attacker.

As a result of the attack, which Kroll described as “highly sophisticated”, the hacker was able to use the targeted employee’s hijacked phone number to access systems storing files that contained personal information of bankruptcy claimants in the cases of FTX, BlockFi, and Genesis.

Kroll said it immediately took action to secure the three customers’ accounts and notified impacted individuals via email.

“We are cooperating with the FBI and a full investigation is underway. We have no evidence to suggest other Kroll systems or accounts were impacted,” the financial services company pointed out.

In notifications sent out to customers, FTX said the attacker gained access to files storing information such as name, address, email address, and FTX account balance. The company noted that Kroll does not store FTX account passwords, and FTX systems or digital assets are not affected.

FTX warned customers to be on high alert for scam and fraud attempts impersonating parties involved in the bankruptcy process.

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Shortly after Kroll and the cryptocurrency companies started notifying customers, FTX users reported getting phishing emails claiming they were eligible to start withdrawing funds from their FTX account.

Genesis also told customers that their name, address, email address and claim against Genesis debtors was compromised as a result of the Kroll hack, and warned that the information could be leveraged for phishing emails and other scams.

BlockFi has also issued a statement, warning customers about a likely uptick in phishing attempts and spam phone calls as a result of this incident.