BlockFi data breach can allow criminals to extort rich customers

 

BlockFi, a provider of crypto-currency loans, reported Tuesday that it suffered a data breach that may put some of its customers in physical danger.

According to its incident report, some of the company’s customer data was breached through a SIM card exchange attack on one of its employees.

The attackers successfully stole the email account and phone number used for the employee’s account verification procedure, allowing them access to BlockFi’s records.

AT&T seeks $200 million in damages for 2018 SIM exchange attack

SIM exchange attacks are the result of network operator vulnerabilities and are usually carried out by conspirators with access to telephone network equipment, although external intrusion techniques are also possible. This type of attack has been responsible for several high-profile exchange thefts, but usually targets the customers themselves.

Attackers allegedly tried to withdraw customer funds directly, but the attempts were unsuccessful, says BlockFi.

However, the attackers had full access to the customer data used as part of BlockFi’s marketing efforts.

Victim of SIM exchange sues Bittrex crypto exchange for $1 million in Bitcoin theft

The company emphasized that no „non-public identifying information“ was leaked, which would include bank account numbers, passwords or social security numbers.

However, the hackers gained access to the full names of customers, email addresses, dates of birth, and in particular, activity information and physical addresses.

Can victims be physically extorted?

BlockFi claims that there is no threat to the clients‘ funds in Bitcoin Circuit Review, Bitcoin Capital Review, Bitcoin Billionaire Review, Bitcoin Evolution Review, Bitcoin Investor Review, and writes: „Due to the nature of the information that was leaked, we do not believe that there is any immediate risk to BlockFi’s clients or the company’s funds.

However, address and activity data can expose affected users to extortion and physical theft.

BlockFi did not disclose what type of activity data was included in these databases and refused to answer Cointelegraph’s query on the subject, referring to the full incident report.

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An unidentified spokesperson only added: „we have received no further indications that an unauthorized third party has altered the information accessed at this time“.

However, it is easy to believe that simply reading the activity data would allow attackers to know the size of the customer’s account and the promises of guarantees. This type of data is crucial to any targeted marketing campaign.

Furthermore, BlockFi’s privacy policy explicitly states that this information is available for marketing use:

„We may use your personal information and information about how you use our services to send you promotional and other information. We may also use your personal information to perform analysis regarding your use of our services and products and the effectiveness of our marketing initiatives.

The connection between home address, customer activity on the platform and their identification data could allow criminals to accurately target victims of this attack to extort them for their crypto-currency.

This type of theft is not unknown, as a Singaporean man was reportedly kidnapped in January and forced to transfer the cryptomonies in his possession.

Ripple-CTO kritisiert Bitcoin (BTC) Halbierung

David Schwartz, CTO von Ripple Inc. hat Zweifel an der Vorhersage, die Peter Schiff über die Preisbewegungen nach der Halbierung von Bitcoin (BTC) gemacht hat.

Verkaufen Sie die Tatsache

Laut Schiff wird der Bitcoin (BTC)-Markt nach der Halbierung von Bären dominiert werden. Wir müssen uns auf massive Liquidationen einstellen, besteht er darauf.

Liquidationen werden von Spekulanten unter dem Mantra „sell the fact“ geführt. Gemäß der Analyse des Gold-Bugs haben alle, die am Kauf von Bitcoin (BTC) interessiert sind, dieses bereits gekauft.

Ripple-CTO und der bekannte Entwickler David Schwartz drückte seine Uneinigkeit mit der Tirade von Herrn Schiff aus. Seiner Meinung nach hat der erfahrene Investor die Korrelation zwischen der Marktstimmung und der bevorstehenden Preisbewegung falsch interpretiert.

Wollen Sie damit sagen, dass der bullishe Effekt der Halbierung auf das Angebot eingepreist ist, der bearishe Verkaufsdruck danach aber nicht? Die Umkehrung erscheint mir viel plausibler, und doch immer noch ziemlich unplausibel.

Als Reaktion darauf wies Herr Schiff noch einmal darauf hin, dass der Markt nach der dritten Halbierung bald mit Käufern übersättigt sein wird.

Vermögen durch Bitcoin

Extrinsischer Wert, innerer Wert

Die Legende der XRP-Community, Tiffany Hayden, beschloss, sich an der Diskussion zu beteiligen. Sie erläuterte, dass Mr. Schiffs Theorien über den Wert von Vermögenswerten in der Kryptotechnik nicht funktionieren, da sie „importiert“ werden:

Peters Meinung über den intrinsischen Wert sei nichts anderes als ein moralischer Import. In Wirklichkeit wird der Wert der extrinsischen Güter vom Wert der intrinsischen Güter ABGELEITET. Sie sind insofern gut, als sie für die Erreichung von Zielen notwendig sind, die an sich gut sind.

Wie bereits von U. heute berichtet, ist Peter Schiff sicher, dass die lang erwartete Halbierung der Bitcoin (BTC) dramatisch überschätzt wird.