Trust Wallet has decided to temporarily suspend Transak’s fiat-to-crypto payment service due to a recent data breach that the Miami-based firm experienced. Hackers were able to gain access to over 92,554 users’ personal data by using a sophisticated phishing tactic against a Transak KYC vendor.
Transak has stated that only less than 2% of its 5 million users were affected by this breach. The company is actively working with law enforcement to investigate the situation and has plans to reach out to all impacted users. Various digital asset storage providers, including Trust Wallet, Metamask, Ledger, and Coinbase, utilize Transak’s fiat-to-crypto payment corridor to facilitate transactions between fiat currencies and cryptocurrencies like Bitcoin and Ethereum.
While Trust Wallet has taken the precaution of removing Transak’s onramp service to protect its users, they have assured that no sensitive wallet information was exposed. Other crypto wallet companies may follow suit in suspending support until the situation is resolved. It is important to note that the stolen KYC materials have not been used for malicious purposes as of now.
Although there is no evidence of the data being misused, affected users are advised to stay vigilant and watch out for any suspicious activities. Transak will be reaching out to these users with guidance on how to protect themselves from potential misuse of their information and offering resources such as identity monitoring services.
During the investigation into the data breach, a ransomware syndicate known as Stormous has claimed responsibility for the attack. The syndicate reportedly obtained over 300 gigabytes of user data and shared personally identifiable information on their website. Stormous has also claimed responsibility for hacking the web3 identity protocol Fractal ID earlier in July.
This incident serves as a reminder of the importance of cybersecurity in the digital age, especially within the cryptocurrency industry where personal and financial information is at stake. It is crucial for companies like Transak to strengthen their security measures to prevent future breaches and protect their users’ data. Trust Wallet’s decision to temporarily suspend Transak’s service demonstrates their commitment to prioritizing user safety and security.
