Netcoins averts cybersecurity attack limiting losses to $250k, customer funds secure Netcoins averts cybersecurity attack limiting losses to $250k, customer funds secure
Netcoins demonstrates resilience with prompt response to cybersecurity breach maintaining customer fund security.
1 min read
Updated: Sep. 19, 2023 at 10:16 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Netcoins, the online cryptocurrency brokerage owned by BIGG Digital Assets, claims to have detected and prevented a cybersecurity breach on Sept. 17. Its internal control systems identified suspicious activity on its hot wallets and blocked unauthorized crypto-asset withdrawals.
A statement from the company reported that the incident led to the withdrawal of coins from Netcoins’ operational float valued at approximately CAD 343,000 (USD 254,000.) It was stated that no customer funds or crypto assets were found to be compromised. This, Netcoins claims, demonstrates the effectiveness of its automated system, which it says functioned as designed by detecting irregularities, responding promptly, and alerting the company’s staff.
Following the incident, Netcoins says it took immediate corrective actions, such as removing the unauthorized user and strengthening network security. It notes that all subsequent crypto-asset withdrawals underwent manual review and verification, providing an additional security layer. Furthermore, Netcoins announced launching an internal investigation to determine if the bad actor attempted to extract customer personal information during the breach.
To further enhance security, Netcoins states that it executed a comprehensive hard reset on all customer passwords, requiring users to set new credentials for platform access. The company also asserts to have updated its internal passwords, password management systems, and tokens and keys for its network.
Netcoins reports it continues to operate with reinforced procedures to ensure customer protection, confirming it securely holds all customer crypto assets and funds, maintaining a 1:1 holding ratio.
Netcoins also says it is conducting a forensic investigation with third-party cybersecurity experts’ assistance to understand and address the breach’s cause and scope thoroughly. Netcoins further claims to have notified law enforcement of the incident.
Posted In: Hacks
Author 
Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
