Binance and Kraken Successfully Prevent Social Engineering Attacks Like the One on Coinbase

Binance and Kraken, two major cryptocurrency exchanges, have recently fallen victim to a series of social engineering attacks akin to the breach that affected Coinbase.

Cybercriminals engaged with customer service representatives using bribery to secure internal communications, reportedly providing methods to connect with their accomplices via messaging services. Fortunately, both Binance and Kraken managed to thwart these efforts, safeguarding their customer data.

These incidents emulate the deceptive strategies employed against Coinbase, which has acknowledged an anticipated expenditure ranging from $180 million to $400 million for recovery and reimbursements after hackers acquired sensitive customer data.

In that case, the attackers issued a ransom demand of $20 million after compromising the personal information of Coinbase’s clientele through bribed overseas employees. Following this breach, the implicated staff members were dismissed, and authorities were notified.

At Binance, artificial intelligence-based systems played a pivotal role in identifying and interrupting messages related to bribery, effectively terminating suspicious interactions before they could escalate further. The implementation of stringent access protocols also contributed to reducing the exposure of customer data unless initiated by the users themselves.

Coinbase had reportedly begun noticing irregular activities in January, with rival trading platforms alerting it to potential threats aimed at its key clientele as early as the previous December.