In a wave of heightened cybersecurity concern, the crypto scene has ensnared in a spate of SIM-swap attacks, specifically aimed at users of the platform Friend.tech. In one instance, a single wrongdoer managed to loot approximately $385,000 worth of Ether within a narrow timespan of just 24 hours. This illicit gain was enabled by exploiting the cell phone numbers of four different Friend.tech users.
Friend.tech is a social media-based site, allowing its users to purchase “keys”, thereby gaining access to private chat rooms with specific individuals. The recent SIM-swap scams showcase a simple but effective hack – when the scammer gets hold of the victim’s phone number, they leverage it to gain authentication, allowing them access to the victim’s social media and cryptocurrency accounts.
On the backdrop of these incidents in October, Manifold Trading, a business developing tools for the crypto-space, estimated that there could be a risk of as high as $20 million against Friend.tech’s total locked-in value of $50 million. It advised further fortification of the platform by implementing two-factor authentication (2FA) as part of its security policy.
Nevertheless, some scepticism arises as this suggestion reflects upon the balance between user experience and the necessity for tightened security measures. Increasing security protocols may indeed deter the malevolent activities of fraudsters, but equally, it could potentially discourage genuine users who might find the additional steps inconvenient or cumbersome.
Founder and CEO of wallet security firm Delegate “0xfoobar” echoed these concerns by recommending the removal of phone numbers from social media accounts in response to these breaches. While this move might seem drastic to some, others might consider it a small price to pay for keeping their digital assets safe.
On a similar note, the cybersecurity breach of Vitalik Buterin’s account via a SIM-swap hack triggered further calls for implementing 2FA security measures. This would hopefully alleviate the risk of leaked phone numbers.
The recent assault on cryptocurrency users signifies the classic trade-off between form and function. While the technology offers unique opportunities for enhancing online interaction, curbing the spree of cybersecurity breaches is paramount. Whether the community is ready to accept a potential hit on user experience for the sake of enhanced security is a topic of lively online conversation, and this delicate balance will continue to influence the evolution of the crypto-space.
Source: Cointelegraph
