Bitrabo Editorial
Popular cryptocurrency tracking platform CoinStats faces a security breach that has exposed user wallets and led to scam notifications being sent to mobile devices. As a result, the company has temporarily shut down its services to investigate the incident further.
The breach, officially confirmed by CoinStats on their social media channels, has impacted an undisclosed number of user-created wallets within the app. In response, CoinStats is advising all users with wallets on their platform to transfer their cryptocurrency holdings to safer locations to minimize potential losses.
Although the exact scope of affected users is still being determined, CoinStats is urging all wallet users to secure their funds promptly, according to a company spokesperson.
Phishing Scam Targets Users with False Promises
The security breach involved an elaborate phishing scam that targeted CoinStats users, especially those using iOS devices. Users were deceived with fake notifications claiming they had won a significant amount of cryptocurrency, like 14.2 ETH (Ethereum). By clicking on these notifications, users were likely directed to a malicious website aiming to extract their private keys and empty their wallets.
These types of scams are on the rise, exploiting users’ eagerness for quick profits in the cryptocurrency realm. It is vital to remain cautious of unsolicited messages, especially those offering rewards or demanding immediate responses.
Transparency Issues Surrounding the Breach
CoinStats asserts that only internal wallets created within their app were affected by the breach, emphasizing that externally linked wallets and those on centralized exchanges are secure. However, some users have reported unauthorized transactions even in their external wallets, raising doubts about CoinStats’ statements.
The company has faced criticism for lack of transparency regarding the breach’s full impact, such as the number of compromised wallets and the total cryptocurrency stolen. While promising a detailed report on the incident, CoinStats has not specified when it will be published.
This breach underscores the growing cybersecurity threats in the cryptocurrency sector and highlights the increasing efforts of malicious entities targeting user funds.
Featured image: Mashable, chart: TradingView