Members of the public who have cryptocurrency accounts should take the necessary steps to safeguard their linked email accounts.
Police said in a crime advisory on Saturday (Sept 12) that they have noticed an increase in cases involving unauthorised access to cryptocurrency accounts — through compromised linked email accounts — since mid-August.
Investigations found that several of the affected email accounts had previously appeared in data breaches on other platforms. This suggests that the victims’ credentials may have already been exposed.
The perpetrators may have then exploited this and used the compromised credentials to access victims’ cryptocurrency accounts, taking advantage of those who reused the same passwords across multiple online services.
But how?
While it may appear that there are several “layers” for perpetrators to cross, it is not impossible.
This can be achieved by searching a victim’s compromised email account to identify cryptocurrency platforms or exchanges used by the victim.
Once identified, inbox rules can be set to automatically archive, forward or delete emails from cryptocurrency exchanges to avoid detection.
Meanwhile, perpetrators may also initiate password reset requests for cryptocurrency exchange accounts and intercept password reset links, one-time passwords or verification emails sent to a victim’s compromised email account.
If a victim uses the same password across multiple online services, including their cryptocurrency account, then, perpetrators can simply use the credentials obtained through data breaches to gain access.
How to protect yourself
Members of the public should use strong and unique passwords for each online account and avoid reusing passwords across multiple services.
In addition, they should always enable multi-factor authentication (MFA) or two-factor authentication (2FA). Where possible, the use of an authenticator application would also improve account security.
They should also regularly review the security settings of their email account, including looking out for unauthorised inbox rules, email forwarding settings and suspicious login activity.
When prompted of data breaches by service providers, those affected should immediately change their passwords and ensure that 2FA or MFA is enabled.
Meanwhile, cryptocurrency accounts should be regularly reviewed, with account activity notifications enabled.
Those who believe that their email and/or cryptocurrency account has been compromised should immediately contact their service provider to secure or freeze the affected account.
They should also report the matter to the police.
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