Fractal ID postmortem linked to 2022 password hack.

Blockchain identity platform Fractal ID has published a postmortem detailing the July 14 data breach the company suffered. The breach has since resulted in an incident in 2022 in which an employee's hacked password was reused.

According to Fractal ID, the compromised account had been an operator of the platform for three years and had administrator privileges. This allowed the attacker to bypass internal data privacy systems, although system monitoring helped lock the attacker out in just 29 minutes.

The main cause of the violation

The operator's failure to adhere to operational security policies and training, as well as the reuse of credentials from previous hacks, facilitated the breach.

In the year On July 14, 2024, the crypto identity verification provider detected unusual activity in one of its back offices. This activity was quickly identified as a malicious attack, which resulted in data exfiltration of about 0.5% of the user base.

But Fractal ID mentioned in its post that it had disabled all accounts and limited access to senior staff. The company made it a priority to improve its security measures to prevent future problems; For example, request redirection, improved authorization, stricter monitoring of failed authentication attempts, and stricter IP monitoring.

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In addition to internal efforts, Fractal ID contacted the relevant data protection authorities at the Cybercrime Police Unit in Berlin. The company is working on cyber security services to monitor the potential distribution of stolen data on known hacking websites.

The impact of a data breach

According to the report, the stolen data affected around 6,300 users with various levels of information ranging from physical authentication to completing KYC checks. This data may include names, email addresses, phone numbers, wallet addresses, physical addresses, and images of uploaded documents. Fractal ID also contacted affected users directly to report the breach.

Fractal ID founders Julian, Julio, Luis and Ana expressed their sadness at the incident and emphasized their commitment to protecting user data. He reiterated the company's goal of a self-sustaining storage system to enhance data security.

This security lapse serves as a great reminder of the problems with protecting data. Autix10, a crypto ID provider, disclosed on June 27 that their online administrative login details had been exposed. However, in this case, the attacker does not appear to have been able to access any customer data.

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