Popular
cryptocurrency
portfolio
tracker
CoinStats
is
reeling
from
a
security
breach
that
exposed
user
wallets
and
sent
scam
notifications
to
mobile
devices.
The
company
has
taken
the
drastic
step
of
shutting
down
its
platform
entirely
while
they
investigate
the
incident.

The
breach,
confirmed
by
CoinStats
on
their
official
social
media
channel,
compromised
a
yet-to-be-determined
number
of
user-created
wallets
within
the
app.
CoinStats
is
urging
all
users
who
created
wallets
on
their
platform
to
immediately
transfer
their
crypto
holdings
to
minimize
potential
losses.

 

While
the
exact
number
of
affected
users
is
still
under
investigation,
CoinStats
advises
all
its
wallet
users
to
move
their
funds
to
a
secure
location
as
soon
as
possible,
a
spokesperson
stated.

We
are
currently
experiencing
a
security
incident
affecting
wallets
created
directly
within
CoinStats;
this
does
not
impact
externally
connected
wallets.

If
you
have
your
private
key
exported,
move
your
funds
ASAP.

—
CoinStats
(@CoinStats)

June
22,
2024

Phishing
Scam
Lures
Users
With
Fake
Rewards

The
security
breach
involved
a
sophisticated

phishing
scam.
CoinStats
users,
particularly
those
on
iOS
devices,
received
notifications
congratulating
them
on
winning
a
substantial
amount
of
cryptocurrency,
specifically
14.2
ETH
(Ethereum).
Clicking
the
notification
likely
led
users
to
a
malicious
website
designed
to
steal
their
private
keys
and
drain
their
wallets.

These
scams
are
becoming
increasingly
common.
Hackers
exploit
user
excitement
surrounding
the
potential
for
quick
gains
in
the
crypto
space.
It’s
crucial
to
be
wary
of
unsolicited
messages,
especially
those
promising
rewards
or
requiring
urgent
action.

Transparency
Concerns
Cloud
The
Issue

CoinStats
maintains
that
the
breach
only
affected
internal
wallets
created
within
their
app.
They
assure
users
that
externally
connected
wallets
and
those
stored
on
centralized
exchanges
(CEX)
remain
secure.
However,
some
users
have
reported
unauthorized
transactions
even
in
their
external
wallets,
casting
doubt
on
CoinStats’
claims.

 

The
company
has
also
been
criticized
for
a
lack
of
transparency.
The
full
extent
of
the
damage,
including
the
number
of
compromised
wallets
and
the
total
amount
of
stolen
cryptocurrency,
remains
unknown.
CoinStats
has
promised
a
detailed
report
on
the
incident
but
has
not
provided
a
timeframe
for
its
release.

The
CoinStats
breach
serves
as
a
stark
reminder
of
the
evolving
cybersecurity
threats
within
the
cryptocurrency
space.
As
the
industry
continues
to
grow,
so
do
the
efforts
of
malicious
actors
targeting
user
funds.

Featured
image
from
Mashable,
chart
from
TradingView

Go to Source
Author: Christian Encila

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