• Binance and Kraken blocked attacks using AI and strict internal protocols.

• Coinbase employees were deceived by hackers, who leaked user data despite prior warnings.

• Crypto firms must train staff, as human error enables security breaches.

Recently, several cryptocurrency exchanges have faced serious attempts at hacking. Reportedly, Binance and Kraken also endured the same kind of social engineering attack that struck Coinbase. On the other hand, Binance and Kraken were able to stop the attacks, and no customer data was stolen.

Exchanges Alerted Since December, Yet Coinbase Hit in May

Binance and Kraken also endured the same kind of social engineering attack that struck Coinbase. Bloomberg reports that hackers attempted to pay off customer service employees at Binance. The purpose was to inform employees of the Telegram account they were directed to. On the other hand, Binance’s AI systems spotted the questionable activity. Despite the messages being in other languages, the bots were able to stop them in a short amount of time.

Additionally, because the rules were strict, the platform kept sensitive data safe. As with other significant markets, Binance permits its official representatives to check customer details only during formal assistance sessions. With fewer people having access, the chances of data leaking were much lower.

Unfortunately, Coinbase faced a different fate. The employees were allegedly tricked in May, despite the fact that similar warnings had been shared among major exchanges like Coinbase as early as December. Employees providing customer service were reportedly offered a bribe to provide personal user data.

Despite no money or personal passwords or keys being compromised, the stolen information revealed names, dates of birth, addresses, and details of users’ bank accounts. The use of such data can still lead to theft or fraud involving someone’s identity. Coinbase projects that it will lose up to $400 million due to the security incident and the expense of reimbursing users. The company is giving a prize of $20 million to whoever helps solve the crime.

Binance, Kraken AI Tools Block Phishing Before Damage Done

Even with warnings about the attackers, some employees still provided information to them. The hackers are said to have demanded $20 million from Coinbase in exchange for not releasing the customer data. It is said that signs of suspicious behavior among workers were spotted as early as January.

Still, Binance and Kraken’s powerful systems enabled them to avoid any major problems. Thanks to rapid action and AI tools, they were able to catch the phishing attempts before they did any harm. Using this proactive method yielded good results.

In addition, this situation demonstrates how dangerous social engineering has become. Rather than going after software alone, hackers are now focusing on people within the system. It adds an extra challenge to the task of securing user data.

The risk to crypto companies highlights the importance of keeping watch, especially when involving others in their projects. The ongoing events show how valuable it is to train employees and use modern security technology.

Lastly, as Coinbase faces the challenges, Binance and Kraken demonstrate how industry members can handle situations. Their achievement shows that companies should monitor threats closely, have solid practices, and take urgent preventive actions.