US Bitcoin ATM Giant Byte Federal has allegedly faced a data breach. According to Techcrunch report on December 12th, hackers may have obtained the personal data of roughly 58,000 users from a data breach at the sector giant US Bitcoin ATM company Byte Federal.
User names, addresses, phone numbers, social security numbers, government-issued identification documents, transaction histories, and images are among the compromised data.
The data breach incident comes as one of the many that the crypto industry has faced in the past one year.
The availability of the internet, the growth among different sections of society and a lack of proper protection are the main reasons listed out for most data breaches worldwide.
When Did The Data Breach Happen?
The company found the issue on November 18 after the attack has already happened on September 30. The cause was the exploitation of a flaw in the third-party program GitLab.
Since then, Byte Federal, which runs more than 1,200 Bitcoin ATMs (electronic kiosks that allow you to buy and sell cryptocurrencies) throughout the United States, has changed its internal passwords and hard reset all customer accounts.
Also Read: Crypto ATMs To See 32.7% CAGR Growth by 2028 As Per Market Forecasts
Why Are Data Breached Increasing?
The amount of compromised data is increasing as more and more businesses suffer from debilitating security breaches. According to data breach statistics, hackers are highly motivated by financial gain to obtain data, and compromising personal information is a highly desirable kind of data.
Despite the fact that breaches are becoming more frequent, it is also clear that businesses are still not adequately prepared for them. This has caused an increase in data breach cases across the world.
Also Read: Australia Decides To Crack Down On Crypto ATMs With New Task Force, Amid Growing Misuse
Crypto Markets Face Rise in Data Breach Incidents
As Global financial markets have faced issues with data breach, so has the crypto diaspora. Just previously, VUSD confirmed in a statement on September 26, 2024, that there had been a serious security breach involving the Onyx Protocol that led to the theft of more than $13 million in VUSD.
Immediate action had been taken in response to this breach, including suspending the protocol’s smart contract. Additionally, the exploit took place during a liquidity proposal with the Onyx Decentralised Autonomous Organisation (DAO). Following the incident, the smart contract was suspended to facilitate proper communication and inquiry.
Only $1.5 million is reported to have been sold into liquidity pools, despite the fact that the hacker was able to siphon off a sizeable amount. This decreased liquidity on secondary markets.
Also Read: Coinflip Expands Digital Currency ATMs To 45 New Locations In U.S.A