The popular European Bitcoin brokers, Litebit.eu has recently suffered its second malicious attack in six weeks, causing a major data breach.
When Bitcoin exchanges and brokers suffer a malicious attack, it always sends a worrying message to the public and investors. The issues go far beyond just stolen money, especially since not all hacks even involved stealing currency. The worrying thing about these attacks comes from a security-centric point of view. After Litebit.eu got hacked for the second time in a period of six weeks, it is likely that this will affect the company’s reputation as well as future investments in this popular cryptocurrency.
The Dutch cryptocurrency brokers, Litebit.eu quickly rose as one of the most popular brokers dealing with cryptocurrency. The user-friendly techniques it incorporated to buy major currencies with convenient payment methods, ensured that this broker soon became one of the firm favorites across Europe.
However recent malicious attacks may likely damage the company’s reputation and success. The latest attack involved a data breach which affected a large part of Litebit’s users. Since the company is one of the largest cryptocurrency brokers in the Netherlands, they had large databases full of personal information on its users, including payment methods, contact details, and other highly sensitive data.
The attack was initiated last week September 12. The hackers responsible managed to infiltrate Litebit’s database and gained access to email addresses, passwords, IBAN information, and other information on its users. To date, no money has been reported as stolen. The latest malicious attack has been reported to Dutch authorities including the police and the Data Protection Authority. Although, it is unclear if any progress has been made in finding the hackers responsible.
This follows a previous malicious attack that occurred only last month. While the details are not confirmed, sources say that the attack also involved theft of personal details and information on Litebit’s users rather than currency theft. Litebit has not been very vocal in regards to these attacks. It only confirmed that it was “potentially” breached and that no money had been stolen. Litebit’s silence is also another worrying aspect to some, especially considering that they suffered two attacks within six weeks.
Since the attacks, Litebit has advised its users to change their password as well as resetting all 2FA settings. Using 2FA in the world of cryptocurrency is a fairly standard practice, as most services experience data breaches at one point or another. In most cases, these data breaches are performed by third parties and not the company itself.
At this point, the question of how Litebit will proceed after these attacks is pure speculation. The company’s silence on the matter is also not aiding is assuring worried users. So far what we do know is that both attacks were due to the company’s supplier, rather than Litebit itself and that so far most attacks seem to be centered around information, rather than money. Most experts speculate that centralized cryptocurrency will become an even more irresistible target for hackers in the future.