Coinmama, one of Israel’s largest crypto brokerage firms, made an official announcement on Feb.15, stating that the firm had suffered a data breach, with nearly 450,000 accounts affected.
The firm cited a post on the dark web registry that included a list of emails and hashed passwords of accounts that had registered with Coinmama until 5th August 2017.
The Israel-based firm’s announcement comes as part of a pretty major breach that has affected 24 companies and 747 million records.
The firm’s official stance states:
“As of February 15, 2019, there has been no evidence of this data being used by perpetrators. Given the dated nature of the published data, we have no reason to suspect that any other Coinmama systems are compromised. Coinmama does not store credit card information.”
Coinmama said that it was working on notifying users that they might be potential victims of this hack, guiding them with steps to reset their passwords on their next login, monitor the brokerage system’s for suspicious activities and to notify the firm on any external indication of the stolen data being put to use.
The users have been requested to set up a password with atleast 8 digits and to be unique in nature, to avoid pursuing emails from unknown sources and to restrain clicking on attachments that redirect to suspicious websites/links.
The crypto exchange industry has been jolted by not one but several such setbacks repeatedly since the turn of the year.
As reported on Jan.15, New Zealand-based crypto exchange, Cryptopia, purportedly lost $16 million worth of cryptocurrencies, Ethereum wallets being the target, with the breach continuing a fortnight further, even after Cryptopia suspended it’s platform operations.
Some crypto exchanges-Coinbase, Binance, and Gemini- are among those considered the pioneers of cyber security and have yet to face hacking attempts on their online trading platforms.
The clientele of such firms have kept growing despite growing number of exchanges falling prey to nefarious attacks by hackers, which has led to overall decline in consumer trust due to poor internal management and lack of an adequate security architecture.