US Bitcoin ATM operator reports data breach of 58,000 customers

Byte Federal, one of the largest Bitcoin ATM operators in the United States, has suffered a major data breach that may have affected 58,000 customers.

On December 12, Florida-based Byte Federal filed an application with the Maine Attorney General, reporting a security breach that resulted in unauthorized access to its customers' personal data.

Byte Federal said it discovered the attack on November 18, 30 days after it took place on September 30, by a bad actor exploiting a vulnerability in software provided by a third party.

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

58,000 customers had their personal data exposed

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

Information that may be exposed includes names, dates of birth, addresses, phone numbers, email addresses, government-issued identifications, social security numbers, transaction activity, and photographs of users.

Byte Federal says it has no evidence that any of its customers' personal information has been used in any way. He added:

However, we are taking precautionary measures to ensure the security of your data and mitigate potential risks.

Byte Federal urges customers to reset their login credentials

Following the breach, Byte Federated issued a notification of the incident by performing a hard reset on all customer accounts.

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

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

Related: Australia to crack down on crypto ATM providers, citing money laundering risk

The ATM company has urged its customers to reset their login credentials.

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 obtained by CoinATMRadadar.

The largest share of Bitcoin ATMs in the US is Bitcoin Depot, which has at least 8,100 crypto exchange machines.

Bitcoin ATM is one of the most straightforward methods to exchange currencies such as USD for BTC and vice versa without using a centralized currency.

In September, the US Federal Trade Commission issued a warning against Bitcoin ATMs, warning that fraud related to BTC ATMs has increased by 1,000% since 2020.

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