Byte Federal, managing 1,300 Bitcoin ATMs across the US, has advised customers to reset their login credentials after a major data breach.
Byte Federal, one of the largest Bitcoin ATM operators in the United States, experienced a significant data breach that could have impacted up to 58,000 clients.
On December 12, Byte Federal, a Florida-based company, submitted a filing to the attorney general of Maine, noting a security compromise that resulted in unauthorized access to its clients’ data.
The attack was detected by Byte Federal on Nov. 18, more than 30 days after it had taken place on Sept. 30.
The bad actor exploited a vulnerability in software provided by a third party.
The Bitcoin ATM operator promptly terminated its platform upon discovering the incident and guaranteed its clients that no user assets or funds had been compromised.
Personal Data Of 58,000 Consumers Was At Risk Of Being Exposed
Byte Federal stated in the filing that the bad actor attempted to acquire unauthorized access to the personal information of up to 58,000 customers, including 111 Maine residents.
The data that could have been exposed included the names, dates of birth, addresses, phone numbers, email addresses, government-issued IDs, social security numbers, transaction activity, and photographs of users.
Byte Federal stated that it has no evidence that any of its customer’s personal information was compromised or misused in any way.
In addition, it included:
“Nonetheless, we are taking precautionary measures to ensure the security of your data and to help alleviate any concerns you may have.”
Byte Federal Strongly Encourages Its Clients To Update Their Login Credentials
In the aftermath of the intrusion, Byte Federal implemented a hard reset on all customer accounts and issued a notification regarding the incident.
In order to prevent any additional unauthorized access, the platform also updated its internal passwords, password management system, tokens, and keys.
According to Byte Federal, they are currently conducting a forensic investigation to ascertain the cause and extent of the incident with the help of an independent cybersecurity team.
They also stated that a legal investigation is ongoing.
The ATM company also encouraged customers to reset their login credentials and warned that they may be required to verify their data and affirm their identities for their safety.
Byte Federal Is Responsible For Operation Of 4.3% Of Bitcoin ATMs In United States
According to CoinATMRadar data, Byte Federal is responsible for the operation of 1,356 Bitcoin ATMs in the United States, which accounts for 4.3% of all crypto ATMs in the country.
Among the Bitcoin ATMs located in the United States, Bitcoin Depot is the largest operator, with a minimum of 8,100 crypto exchange devices.
A Bitcoin ATM is one of the most straightforward methods for exchanging fiat currencies, such as the US dollar, for BTC and vice versa, without the need for a centralized exchange.
The US Federal Trade Commission issued a warning on Bitcoin ATMs in September, noting that fraud incidents related to BTC ATMs had increased by 1,000% since 2020.
