Binance and Kraken Block Hack Like Coinbase Attack

Binance and Kraken Prevent Phishing Attempt Similar to Coinbase Attack

Crypto exchange platforms Binance and Kraken recently prevented cyber attacks that were identical to the recent one that affected Coinbase, as per the new report from Bloomberg. These phishing attempts, trying to get customer data, were successfully blocked. All because of strong internal protections and smart AI security systems.

Hackers Targeted Customer Service Reps

As per the reports attackers used social engineering, in this technique hackers influence employees into providing sensitive information. In this case, they tried to bribe customer service staff working for these platforms. Hackers messaged employees to a Telegram account. Through it they would give away the data of customers prominently account balances and home addresses.

This is the similar attack that affected Coinbase, which exposed the breach in a recent filing with the U.S. SEC. It mentioned that its customer support personnel who were based abroad were targeted and became the focus of this assault. A few of them offered the data required by the hackers. Consequently, the platform is now confronted with approximately $400 million in cleanup expenses, including customer refunds as well.

Binance’s AI Prevents the Attack

Unlike Coinbase, both the exchanges Binance and Kraken successfully prevented the attacks before any damage was executed. The AI framework of Binance played a prominent role in detecting suspicious activity. It instantly flagged the attempt and blocked the communication. It protected both employees and customers from a data breach.

Kraken also avoided any customer data loss, though it is not clearly known what specific security measures it leveraged. Both the exchange platforms Binance and Kraken confirmed that no passwords, private keys, or crypto funds were revealed during the incident.

Is It the Same Group Behind All Attacks?

It is not clear at this point if the same hackers that attacked Coinbase attempted to breach the two major exchanges. The techniques were extremely similar, which has led people to wonder if it could be the work of the same crew. All three exchanges were contacted on Telegram with proposals to buy access to sensitive information for payment.

Coinbase Offers $20 Million Bounty

To find out the people behind the attack, Coinbase has offered a $20 million bounty to anyone who can bring information that leads to the arrest and conviction of the cyber attackers. The exchange stated that no funds or passwords were stolen, but the attackers have got access to account records. 

Crypto Exchanges Step Up Security

This incident showcases the importance of robust security infrastructure in the crypto industry. While Coinbase is dealing with the consequences of the attack, Binance and Kraken have shown that advanced security measures, specifically AI, can assist stop such problems before they even activate.

For users, the key takeaway is simple: User data is more secure when exchanges have good internal protections and act quickly against such threats. As crypto continues to grow, so will the risks, but exchanges that prepare well to keep their users safe.