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US Bitcoin ATM operator reports data breach of 58K customers

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Byte Federal, one of the largest Bitcoin ATM operators in the United States, has suffered a major data breach potentially affecting 58,000 customers.

On Dec. 12, Florida-based Byte Federal submitted a filing with Maine’s attorney general, reporting a security breach resulting in unauthorized access to the personal data of its clients.

Byte Federal said it discovered the attack on Nov. 18, more than 30 days after it occurred on Sept. 30, with a bad actor exploiting a vulnerability in software provided by a third party.

After detecting the incident, the Bitcoin ATM operator immediately shut down its platform, assuring customers that no user assets or funds were compromised.

58,000 customers had their personal data potentially exposed

In the filing, Byte Federal mentioned that the bad actor attempted to gain unauthorized access to the personal information of as many as 58,000 customers, including 111 Maine residents.

The potentially exposed data included names, dates of birth, addresses, phone numbers, email addresses, government-issued IDs, social security numbers, transaction activity and photographs of users.

Byte Federal said it has no evidence that any of its customer’s personal info personal information was compromised or misused in any manner. It added:

“Nonetheless, we are taking precautionary measures to ensure the security of your data and to help alleviate any concerns you may have.”

Byte Federal urges clients to reset login credentials

Following the breach, Byte Federal performed a hard reset on all customer accounts, sending a notice of the incident.

The platform also updated its internal passwords, password management system, tokens and keys to prevent any further unauthorized access.

“With the assistance of an independent cybersecurity team, we are conducting a forensic investigation to determine the cause and the scope of the incident,” Byte Federal said, adding that a legal investigation is ongoing.

The ATM firm has also urged customers to reset their login credentials, warning clients that they may be asked to verify their personal data and confirm their identity for their own protection.

Byte Federal operates 4.3% of Bitcoin ATMs in the US

Byte Federal operates 1,356 Bitcoin ATMs in the US, accounting for 4.3% of all crypto ATMs in the country, according to data from CoinATMRadar.

The largest share of US-located Bitcoin ATMs comes from Bitcoin Depot, which has at least 8,100 crypto exchange machines.

ATM, Privacy, Hackers, United States

A Bitcoin ATM is one of the most straightforward methods to exchange fiat currencies like the US dollar for BTC and vice versa without using a centralized exchange directly.

In September, the US Federal Trade Commission issued a warning on Bitcoin ATMs, alerting that BTC ATM-related scam incidents had surged 1,000% since 2020.

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