Binance,Kraken,Resist,Social,Engineering,Attacks,While,Coinbase,Suffers,$400,Million,Loss

Major cryptocurrency exchanges Binance and Kraken recently faced social engineering attacks similar to the one that targeted Coinbase. Unlike Coinbase, Binance and Kraken successfully resisted these attacks, preventing any user data leaks due to their robust internal security systems.

On May 15, Coinbase disclosed that cybercriminals had bribed offshore support staff, gaining unauthorized access to users' personal data and account management records. The exchange estimated that addressing the incident and compensating affected clients would cost approximately $400 million. Additionally, Coinbase offered a $20 million reward for information leading to the conviction of the perpetrators. Despite the breach, Coinbase assured that user passwords, private keys, and funds remained secure.

The attacks on Binance and Kraken involved hackers attempting to contact support representatives via Telegram, requesting sensitive customer information such as account balances and home addresses. Fortunately, the AI-based security systems of both exchanges promptly recognized and blocked these social engineering attempts, safeguarding user data.

It is unclear whether the same hackers targeted all three exchanges. However, this incident highlights the evolving sophistication of cybercriminal tactics. Rather than direct technical attacks, hackers are increasingly employing social engineering to manipulate company employees. These attacks are becoming more targeted, with hackers seeking vulnerabilities among staff, particularly those working remotely and lacking adequate information security training.