Crypto at Risk in HubSpot Data Breach
Crypto at Risk in HubSpot Data Breach
Table of Contents
What Is a Data Breach?
A Data Breach is the result of a Cyber Attack where someone gained unauthorised access to a computer system, network or storage, and consequently captured private, sensitive, or confidential personal or financial data.
The HubSpot Data Breach
BlockFi, a leading Crypto services company in the United States that uses HubSpot to store their clients’ personal data, has confirmed a HubSpot Data Breach this morning. Here's the announcement.
What Do We Know so Far?
On Saturday, March 19, 2022, BlockFi informed its customers about the HubSpot Data Breach, saying that an unauthorised third-party gained access to a portion of their client data, including certain client data housed on their platform. BlockFi uses HubSpot as a client relationship management platform.
HubSpot themselves announced here that a bad actor compromised a HubSpot employee account and used it to access data within fewer than 30 HubSpot accounts. It appears that Swan Bitcoin and Pantera Capital were also affected.
HubSpot went on to say that they believe this to be a targeted incident focused on customers in the cryptocurrency industry.
They have terminated access for the compromised HubSpot employee account and removed the ability for other employees to take certain actions in customer accounts.
On April 4th 2022 BlockFi advised some customers that the information this bad actor acquired regarding BlockFi accounts includes data from the following fields:
• First Name
• Last Name
• Phone Number
What was in the 30 Compromised Accounts?
At least one of these accounts is a BlockFi account, so you would expect there to be the personal data of BlockFi customers. How many, we'll have to wait and see.
But it is conceivable that hundreds of thousands of BlockFi, Swan Bitcoin and Pantera Capital customers' personal data has been stolen.
Why Is This Important?
Just a little background in case you don't know who BlockFi is.
BlockFi’s primary business is acting as a custodian for crypto assets like Bitcoin. Their BlockFi interest account (BIA) offers earnings of 8% per annum on US dollar stablecoins. BlockFi is also a lender, using crypto assets as collateral, and the platform can be used for trading.
Many of their customers are retail investors and funds are accessed via a desktop or mobile app. Some BlockFi customers may also be institutional investors, hedge funds and high net worth individuals.
The good news is that BlockFi say that passwords, social security numbers and government issued ID numbers were never stored on HubSpot.
But this is bad news too.
This means that your name, phone number and email address probably were compromised.
Why this Is a big deal?
If experience is anything to go by, in June 2020, crypto wallet manufacturer Ledger suffered a data breach when a website vulnerability allowed hackers to access 1 million Ledger customers’ email addresses and 270,000 of their physical addresses.
Months later, the hackers who obtained the Ledger data emailed clients with threatening Bitcoin ransom requests, sent SMS messages to customers, and created phishing links for users to enter their crypto wallet seed phrases. Ledger users also reported suspicious phone calls originating from the UK, Sweden, and Austria.
Phishing is a cybercrime in which a target or targets are contacted by email, telephone or text message by someone posing as a legitimate institution to lure individuals into providing sensitive data such as personally identifiable information, passwords or MFA codes.
What If You Are a BlockFi Customer?
If you are a BlockFi customer with significant funds in your account, then you should check how vulnerable you are, and take any action necessary.
How might you be vulnerable?
- You have used a weak password on BlockFi
- You have used your BlockFi email and password elsewhere
- You have not activated multi-factor authentication (MFA) on your BlockFi account
- You have not enforced wallet allowlisting for withdrawals
You can check if your account details were compromised in a previous data breach using this website.
How to be Safe
If you are in any doubt about the security of your BlockFi crypto assets after this HubSpot data breach, then you can take the following steps.
- Be extra vigilant about any phone calls, SMS or email messages appearing to come from BlockFi
- Turn on “allow listing” on BlockFi withdrawals
- Activate MFA with a YubiKey on your BlockFi account
- Change your BlockFi password to a complex password
- Keep your complex password on paper in a safe fireproof location or in a trusted password safe
- Create a new email address and change your BlockFi login to use that email address
- Use a VPN when you connect to Crypto platforms
What Can We Learn from This?
Every week we hear about new data breaches, ransomware attacks and theft of crypto assets from crypto projects.
What’s becoming clear for you know I hope is that this Cyber Security problem is not going away, it’s getting worse.
We can see the problem from two different angles.
On the one hand technology companies are not doing nearly enough to protect the private data that was entrusted to them.
And users are not doing enough to learn about the dangers of using the Internet.
Once upon a time in another life I remember users needing to do a European Computer Driving License.
Maybe we need to make it mandatory.
Technology companies are not securing their customers’ assets because they lack the right people and processes to do the job property.
How many more data breaches, ransomware attacks and crypto asset thefts will it take for this to change?
Finally, if you are interested in earning 8% per annum on your USD stablecoins with a BlockFi Interest Account, use this link to get $10 in Bitcoin on your new BlockFi account.
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