BlockFi Warns against Phishing Attacks after Vendor Data Breach

Crypto lending platform, BlockFi has confirmed a data breach incident that took place last Friday using one of its third-party vendors, Hubspot. It was providing customer relationship management (CRM Customer Relationship Management (CRM) Customer Relationship Management (CRM) is a way for brokers to manage the firm’s contacts with existing and potential clients. The firm is using data available from the customer’s trading activity to determine an appropriate course of action when aiming to retain or onboard the customer.This technology is also an effective tool in managing a company's interaction with both current and potential clients. CRMs use data analysis regarding clients’ history with a company to improve business relation Customer Relationship Management (CRM) is a way for brokers to manage the firm’s contacts with existing and potential clients. The firm is using data available from the customer’s trading activity to determine an appropriate course of action when aiming to retain or onboard the customer.This technology is also an effective tool in managing a company's interaction with both current and potential clients. CRMs use data analysis regarding clients’ history with a company to improve business relation Read this Term) and marketing tools to BlockFi.

The New Jersey-based company detailed that an unauthorized third party gained access to Hubspot’s internal systems and compromised a portion of their client data, including certain BlockFi client data. The compromised data include names, emails, phone numbers, company emails and details of the customers’ BlockFi relationship manager.

BlockFi has clarified that its internal systems are safe, and the client funds are not at risk. But, the company is concerned about phishing and other types of hacking attempts using the leaked data that could put its clients at risk. It is particularly worried about SIM swap attacks as fraudsters can impersonate some customers to the relationship manager.

“While this incident occurred at Hubspot and affected a large group of organizations, we at BlockFi take the security of vendor systems incredibly seriously, and we are notifying you directly,” BlockFi’s Chief Security Officer, Adam Healy said in a public announcement.

“We recommend heightened vigilance as we anticipate an increase in phishing Phishing Phishing is a form of cyber-attack in which fake websites, emails, and text messages are used to elicit personal data. The most common targets in this assault are passwords, private cryptocurrency keys, and credit card details.Phishers disguise themselves as reputable businesses and other types of entities. In certain instances, reputable government organizations or authorities are impersonated in order to collect this data.Because phishing relies on psychological manipulation rather than techno Phishing is a form of cyber-attack in which fake websites, emails, and text messages are used to elicit personal data. The most common targets in this assault are passwords, private cryptocurrency keys, and credit card details.Phishers disguise themselves as reputable businesses and other types of entities. In certain instances, reputable government organizations or authorities are impersonated in order to collect this data.Because phishing relies on psychological manipulation rather than techno Read this Term emails and scams.”

Heightened Security

Additionally, BlockFi said that it has implemented additional security measures to protect its platform and client assets after the data breach. “We are remaining extra vigilant and encourage all of our clients and the crypto community at large to do the same,” Healy said.

BlockFi is one of the major crypto lending platforms that is offering interest-bearing cryptocurrency accounts to its retail customers. However, the company came under regulatory scrutiny in the US for its operations and settled with federal and state regulators for $100 million. Furthermore, it has agreed to stop opening new American accounts, but the existing client base would not be impacted.