A popular Bitcoin ATM operator, Byte Federal, filed a report with the Office of Maine’s Attorney General stating that the details of approximately 58 thousand people have been exposed to hackers. According to the report, the breach occurred on September 30th, 2024, and was not discovered for a month. The Florida-based crypto ATM operator, which operates over thirteen hundred ATMs all around the USA, immediately urged its customers to reset their login details after the breach was discovered.
Sensitive data compromised by hackers
The cybercriminals managed to get access to sensitive information such as SSNs, email addresses, phone numbers, DOBs. And even government-issued IDs. The potentially leaked data includes images of ATM users and transaction activity.
Risks of leaked data
There is a chance that the database is currently offered for sale on the dark web as it consists of a very targeted list of people who own crypto wallets. The info presents an opportunity for fraudsters to execute SIM swap attacks and attempt account takeovers.
Byte Federal’s statement to affected users
In a letter to the affected people, Byte Federal stated that the company immediately shut down the platform to isolate the incident and then worked with cyber security experts to patch the loophole in the compromised server.
According to Byte Federal, the attack did not compromise any user funds. Even though fraudsters likely stole the data of tens of thousands of people, there are no reports of misuse of the stolen info. The name of the bad actor behind the attack remains unknown. But Byte Federal is continuing the investigation and is cooperating with law enforcement agencies.
Read also: FTC bans data brokers from selling sensitive information of Americans
Advice for affected users
The Bitcoin ATM operator strongly advises its users to remain vigilant. And immediately report suspicious behavior or activity on their credit reports or financial statements. Fraudsters can use the info to commit identity fraud and execute targeted phishing attacks.
The company also advised affected users to use their rights to freeze their credit reports with all three major bureaus. And also take advantage of the free credit report checks they offer every twelve months.
Broader implications for Bitcoin ATM operators
Bitcoin continued on its path to becoming a mainstream crypto currency. It surged above $100,000 right after the presidential election in the USA. Just a month before the breach, the FTC issued a warning that Bitcoin ATMs had experienced a significant spike in scam incidents. Byte Federal operates about 5% of all Bitcoin ATMs in the USA.
