Compound Finance site can be hacked – ZachXBT

Crypto researcher ZachXBT has warned users to avoid the Compound Finance website, which appears to have been hacked.

On July 11, the security researcher published a post on Telegram telling the community to stay away from the site for the time being. According to ZachXBT, the website leads to a newly registered phishing site and may pose a serious security risk.

Meanwhile, a member of the Compound Financial team confirmed the breach and advised users not to interact with the site to prevent possible personal data and financial loss.

Michael Lewellen, a security consultant at Compound Finance DAO, warned users of the breach. According to Lewellen, the URL has been compromised and is hosting a phishing website. The security advisory warned users not to connect to the site. Despite this, Llewellyn has assured users that the protocol has not been tampered with and that the smart contract funds are safe.

Cointelegraph has reached out to the Campus Labs team for comments, but has yet to receive a response.

Compound Finance X's account was hacked in 2023

The company is not new to security attacks. In the year In 2023, the official X account of the decentralized finance (DeFi) protocol was hijacked by hackers. Like the recent incident, hackers used the company's social media platform to promote a phishing site.

At that time, the account posted an ad promoting free crypto tokens. Users are urged to copy the protocol's official site and click on the link. However, it was quickly flagged as a scam.

Cybersecurity blogger Officer Notes and blockchain security forum Fraud Sniffer confirmed that the account posted phishing links.

On December 30, 2023, the Compound Labs team confirmed that they had been compromised for four hours before finding the account. They also informed their users that they have removed spam messages.

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Phishing attacks will cost nearly $498 million by 2024.

On April 4, Certike CEO Rongui Gu urged the community to be proactively prepared for attacks as the market continues to grow. At the time, the company noted that phishing attacks had reached an “exciting level” in the crypto space.

On July 3, the company reported that the losses due to crypto security issues reached 1.19 billion dollars in the first half of 2024. According to the report, the loss of about 498 dollars of digital assets is due to phishing attacks. For this reason, Gu emphasized the importance of multi-factor authentication and better security practices.

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