Experts Provide Methods and Recommendations for Protecting Personal Data from Social Engineering Infiltration

Coinbase Exchange Scandal: Employees Accused of Selling Customer Data

Coinbase exchange has caused a stir in American society after reports emerged that some of its overseas employees were accepting bribes to leak customer personal information. The incident has drawn attention from major U.S. media outlets, prompting various experts to offer advice to the concerned public regarding data leaks. An increasing number of social engineering scams, stemming from such data breaches, not only target digital assets but also leverage the harvested personal information to exploit the victim’s friends and family. Experts have made recommendations for responding to the Coinbase data leak, which are also applicable to other platforms. The following information is summarized from the Blockworks newsletter.

How to Protect Against Leaked Online Personal Data

Ariel Givner, a lawyer specializing in cryptocurrency and intellectual property, noted in an article that she received numerous messages from clients who were informed that Coinbase had leaked their personal data. So, what can be done to protect against data breaches? If Coinbase notifies customers that their data has been compromised, several measures can be taken.

Victims whose identities have been stolen may be targeted by social engineering scams impersonating them, with these scams potentially extending to the victim’s immediate family or friends.

Some online data removal services, such as DeleteMe, can help remove personal information from the internet. Additionally, requests can be made to Google to remove personal data from online sources. However, if personal information has already fallen into the hands of attackers, it may be prudent to blur one’s home address on Google Maps Street View and proactively notify banks to freeze personal credit card accounts, preventing anyone from increasing credit limits in the victim’s name. Microsoft recommends sending alerts to primary financial credit reporting agencies.

Attacker Tactics and Recommendations

Once attackers have acquired personal data, they may attempt to infiltrate the victim’s circle of family and friends to carry out social engineering attacks. It is advisable to inform friends and family about the situation to raise their awareness. Experts suggest creating a “password” known only to the individual, which is unrelated to personal data but can help friends verify the person’s identity.

Recommendations from U.S. Prosecutors

The Texas Attorney General recommends that Americans avoid using debit cards for online purchases, suggesting that only a specific credit card be used for online transactions to simplify and better protect online identities. The California Attorney General advises using antivirus software, being vigilant against unknown calls, and avoiding clicking on “phishing” emails.

Cancel Pre-Approved Credit Card Authorizations

Some individuals set up numerous pre-approved credit card authorizations for convenience. Experts advise canceling these options to prevent criminals from committing credit card fraud in your name.

Methods to Protect Digital Assets

Regularly review daily and monthly statements, and never share wallet mnemonic phrases or passwords with anyone, including those claiming to be customer service representatives. Write down mnemonic phrases on paper and store them in a safe place. Consider using encrypted password managers and enable two-factor authentication (2FA) wherever possible, ensuring that each account has a unique password.

Activate Withdrawal Allow-Listing and Timely Remove Accounts

Coinbase recommends that customers activate Withdrawal Allow-Listing, allowing only familiar accounts to conduct transactions. If anything seems suspicious, delete the account to prevent social engineering scams from spreading further.

The damage caused by personal data leaks is substantial. Last year, companies including AT&T, UnitedHealth’s Change Healthcare, Ticketmaster, Dell, Disney, Roku, Trello, and several government agencies and brokers experienced customer data breaches. Such incidents can result in collective lawsuits or governmental fines, averaging a loss of $4.88 million.

Taiwan is also facing a severe personal data leak crisis. Media reports indicate that over 23 million pieces of personal data of Taiwanese citizens have been sold online, including names, family members, birth dates, and addresses. Earlier this year, Mackay Memorial Hospital also suffered a hacker intrusion, resulting in millions of personal data being purchased by scammers. This leakage of private information not only poses a risk to the victims but also enables criminals to conduct social engineering scams targeting more victims’ friends and family, which requires special attention.

Risk Warning

Investing in cryptocurrencies carries a high level of risk, and prices may fluctuate significantly; you may lose all your principal. Please assess the risks carefully.