Bloomberg Reveals How Binance and Kraken Foiled Phishing Attacks

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Phishing scams are getting smarter, and this time, crypto exchanges were the target. Recent hacks, including a $1.4 billion breach at Bybit, highlight growing threats, with $2.2 billion stolen in 2024 alone. Coinbase is now battling a lawsuit over alleged data lapses and has refused to pay a $20 million ransom, instead offering the same amount as a bounty. 

While Coinbase fell victim to this social engineering attack, Binance and Kraken managed to stop similar attempts before any damage was done. A new Bloomberg report reveals how these exchanges stayed a step ahead.

What Happened at Coinbase?

Coinbase revealed in a recent SEC filing that hackers tricked some offshore customer service agents into giving access to certain user data and account records. The attackers reportedly offered bribes to these employees. Although no passwords, private keys, or user funds were stolen, the breach is expected to cost Coinbase up to $400 million. This includes reimbursements and cleanup efforts. To track down those behind the attack, Coinbase is even offering a $20 million reward.

Same Tactics Used on Binance and Kraken

According to Bloomberg, Binance and Kraken were targeted by the same kind of phishing scheme. Hackers tried to reach out to customer service agents via Telegram and asked for sensitive information like account balances and home addresses. But unlike Coinbase, these two exchanges didn’t suffer any data leaks.

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How Binance and Kraken Stayed Safe

Thanks to strong internal security systems, Binance and Kraken were able to detect the suspicious activity early. Their AI tools flagged the phishing attempts before any employee gave up information. This quick response helped protect users and avoid any data loss.

Still a Wake-Up Call for Crypto Platforms

Even though Binance and Kraken came out safe, the incident is a reminder of how serious social engineering threats have become. Hackers are no longer just targeting systems, they’re targeting people. Exchanges must stay alert, especially when it comes to third-party service providers.

This latest string of phishing attacks shows that the crypto industry still has work to do in protecting users. While Coinbase deals with the aftermath, Binance and Kraken’s strong defense sets a good example for others to follow.