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Crypto.com loses $34 million in hack involving 483 users

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Highlights:

  • Crypto.com has now released details of this week’s $34 million hack.
  • The cryptocurrency exchange will introduce a new account protection program.
  • All cryptocurrency investors should take protective steps, such as using strong passwords and two-factor authentication.

Leading cryptocurrency platform Crypto.com has finally admitted that 483 users on its platform lost almost $34 million in various digital coins owing to a compromise in two-factor (2FA) authentication. Overall, the unauthorized withdrawals had over $15 million worth of ether, $19 million worth of Bitcoin, and $66,200 in “other currencies”.

The statement from Crypto.com suggests the hackers found a way to bypass the system, enabling them to log in and hijack user accounts, perhaps only with a password. The Crypto.com breach occurs as cybercriminals have been preying on cryptocurrency users with the goal of looting their funds.

Apparently, 483 accounts were affected and the unauthorized withdrawals totaled 4,836.26 ETH, 443.93 BTC, and approximately $66,200 in other currencies. Based on current exchange rates, that’s $15.3 million of ETH and $18.7 million of BTC for a total of $34 million in losses. WAPP can restore up to $250,000 of a participating user’s money in case a third-party gains access to their account.

However, Crypto.com did not reveal how the hack occurred. The company’s blog post merely notes that its security systems first detected suspicious activity, when a “small number” of accounts began approving transactions without the two-factor authentication login from the user. The suspicious activity prompted Crypto.com to immediately suspend all account withdrawals.

New Safety Measures

Crypto.com has now introduced an additional security measure that requires users to wait 24 hours before they can withdraw to a newly registered whitelisted address. Finally, the company is launching the Worldwide Account Protection Program (WAPP) on February 1st for users who want additional protection for their funds.

In addition to the 2FA overhaul, Crypto.com has also engaged with third-party security outfits to examine the security of its new system and also plans to eventually transition to a multi-factor authentication (MFA) model.

How you can protect your crypto?

  • Use strong passwords. Password security is your first line of defense against cybercriminals, so use a password manager to help you create codes that can’t be easily cracked. It’s also important not to use the same password for every account.
  • Enable 2FA. It may not have helped Crypto.com customers, but in many cases, 2FA adds another layer of account protection.
  • Use reputable exchanges. Top cryptocurrency exchanges take strong security measures. Some also have third-party insurance to refund any customer losses in the event of a breach.

Thanks for Reading!!

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