A notification has been sent out to 26,732 customers regarding a data breach by Bitcoin Depot, which occurred on June 23, 2024.
The US, Canada, and Australia-based operators of Bitcoin ATMs said that private information was leaked because of an “external system breach.”
The notice was submitted on Monday to the attorneys general of Maine and Massachusetts, waiting for law enforcement clearance to disclose.
Details of the Breach
The breach allowed an unauthorised party to access documents containing customer names, phone numbers and driver’s license numbers.
Some records may have also held addresses, birth dates and email addresses. The company said that, so far, there is no sign that any stolen information has been misused.
A Bitcoin Depot spokesperson said that federal law enforcement asked the firm to hold off on alerting users. The investigation into the third party responsible was active for nearly a year. On July 18, 2024, authorities said the probe was complete. Bitcoin Depot then began its formal notifications.
Industry Under Attack
Crypto firms often face hacking attempts. In late June this year, over 16 billion login credentials were exposed across popular online services. In May, bad actors stole data from the Coinbase exchange by bribing third-party contractors.
Byte Federal, another Bitcoin ATM operator, reported a breach in December that may have affected 58,000 users when a vendor’s software was exploited.
Advice to Affected Users
Now, the breach includes crypto transactions and even though Bitcoin Depot decided not to offer any kind of identity monitoring or anti-theft protection. All account statements should be checked carefully, and even implement a security freeze on their credit reports.
The company also recommends setting up fraud alerts with credit agencies to require extra checks before new credit is opened in their name.
Global ATM Regulatory Context
ATM operators in the US must follow the Know-Your-Customer rules set by FinCEN. These rules require crypto firms to collect personal details to fight fraud and money laundering. The exposed data is similar to what all crypto ATMs gather during user verification.
A $5,000 cap on overseas cash transfers and a nationwide ban on cryptocurrency ATMs are two of the many anti-money laundering (AML) policies that New Zealand has unveiled.
Associate Justice Minister Nicole McKee announced the amendments on July 9 with the goal of reducing criminal organisations’ abuse of financial technology.
In response to growing accusations of fraud and scams, AUSTRAC, Australia’s financial intelligence agency, has implemented a new set of rules for bitcoin ATM operators.
Company’s Commitment
Bitcoin Depot said it remains dedicated to protecting customer data. The firm added that no user funds were at risk and that it is enhancing its security measures.
The ATM provider is also working with law enforcement to prevent future incidents.
Also Read: Coinme Faces $300,000 Fine After Violating Cryptocurrency ATM Regulations in California