A curated list of individuals with cryptocurrency wallets may end up on the dark web via a threat actor yet to be named.
A recent cyberattack on Byte Federal, a Florida-based Bitcoin ATM operator, exposed the sensitive personal data of approximately 58,000 individuals. The breach occurred on September 30, 2024, but it was not discovered until a month later when Byte Federal reported it to the Office of Maine's Attorney General.
The exposed data includes Name, Address, Social Security Numbers (SSNs), email addresses, phone numbers, dates of birth, transaction activity, users photographs, and government-issued IDs. Alarmingly, images of ATM users and transaction activity were also potentially exposed.
Hackers gained access to a wealth of sensitive data after a GitLab flaw allowed attackers to access a server.
The stolen database appears to pose a high-value target on the dark web, as it contains a curated list of individuals with cryptocurrency wallets. This information could be exploited for various fraudulent activities, including SIM swap attacks and account takeovers.
Byte Federal immediately responded to the breach by shutting down the affected platform and working with cybersecurity experts to address vulnerabilities. The company assured its users that despite the leaked data, no user funds were compromised during the attack.
Affected individuals received notification letters urging them to stay vigilant and monitor financial statements and credit reports closely. Byte Federal strongly advised users to leverage their rights to freeze credit with the three major bureaus -- Experian, Equifax, and TransUnion -- and take advantage of the free annual credit checks offered.
The company also recommended promptly reporting any suspicious activity to help mitigate the risks of identity theft or phishing scams. Byte Federal stated that it is continuing its investigation into the incident and is actively cooperating with law enforcement agencies to identify the culprits.
The incident comes at a time when Bitcoin is experiencing unprecedented growth, crossing the $100,000 mark after the recent U.S. presidential election. This surge, coupled with the mainstream adoption of Bitcoin, has made crypto-related businesses a prime target for cybercriminals.
Notably, Byte Federal operates over 1,300 Bitcoin ATMs across the U.S., accounting for approximately 5% of the nation's Bitcoin ATM market. The breach's scale underscores the broader security challenges facing the cryptocurrency sector, particularly as the Federal Trade Commission (FTC) issued a warning just a month prior about rising scam incidents involving Bitcoin ATMs.
Affected users are urged to review Byte Federal's recommendations carefully and take immediate steps to protect their personal information.
A GitLab spokesperson said the company issues security patches that are automatically updated for GitLab.com customers. However, those who opt for a self-managed deployment are responsible for their own security.
In October, it was reported that people in Russia, Ukraine, Turkey, and more are the target of a malware campaign designed to steal cryptocurrency that used seemingly legitimate software advertisements that were actually trojans.