New York based BlockFi has risen to popularity in the crypto sphere recently as a platform for crypto-asset owners to earn interest on their holdings or borrow against them. They have recently suffered a hack which resulted in a significant data breach for existing customers.
One of the company’s employees was compromised via a SIM-swap which resulted in the hackers ability to access information they otherwise wouldn’t be able to. According to the report: “A BlockFi employee’s phone number was breached and utilized by an unauthorized third party to access a portion of BlockFi’s encrypted back-office system. The unauthorized third party was able to access BlockFi client information typically used by BlockFi for retail marketing purposes throughout the duration of this incident”.
The data leak included “Name, Email Address, Date of Birth, Postal Address, Activity History” that is typically used for marketing purposes. Otherwise, sensitive information such as: “Social Security Number, Tax Identification Numbers, Passports, Licenses, Passwords, Bank Account Information, Account Preferences, Photos uploaded for identification purposes” were not accessed by the hacker.
All customer funds remained safe according to the email sent to them and it also stated that the email was only sent for transparency purposes not because any action needs to be taken on their behalf.
Being an industry that fully lives on the internet, the biggest threat is cyber-attacks. This is why customers must always be wary of the risks included.