A sophisticated cryptocurrency theft involving a 15-year-old hacker has resulted in the loss of $24 million from venture capitalist Marc Rowan through an attack targeting AT&T’s systems. The perpetrator, Ellis Pinsky, executed a complex phishing scheme that compromised AT&T’s security protocols to intercept two-factor authentication (2FA) codes, highlighting a growing trend of SIM swap attacks targeting high-value cryptocurrency accounts.
The attack specifically targeted the verification system used by the Gemini cryptocurrency exchange. By gaining unauthorized access to Rowan’s phone number through AT&T’s network, Pinsky was able to intercept the 2FA code sent by Gemini. This interception provided the final piece needed to access Rowan’s cryptocurrency account, enabling the unauthorized transfer of funds. This incident follows a similar pattern to the $30 million Crypto.com breach where attackers also managed to bypass 2FA protections.
The technical sophistication of the attack has drawn attention from cybersecurity experts, who note that the successful execution of such a complex scheme by a teenage hacker represents a significant security breach. Recent research by Incognia has found that cryptocurrency exchanges often rely too heavily on traditional SMS-based authentication, making them particularly vulnerable to these types of attacks.
The case has prompted investigations by law enforcement authorities, though specific details about the investigation’s progress remain limited. While Ellis Pinsky has been identified as the perpetrator, complete information about legal proceedings or charges has not been disclosed. This incident follows recent efforts by the U.S. Treasury Department to strengthen cryptocurrency security regulations and identification requirements.
The incident underscores the evolving nature of cryptocurrency-related crimes and the importance of robust security measures in both telecommunications and financial services. It demonstrates how vulnerabilities in one system – in this case, AT&T’s network – can be exploited to compromise security measures in another, such as a cryptocurrency exchange’s authentication protocols. The National Institute of Standards and Technology (NIST) has recently emphasized the need for stronger authentication methods, including phishing-resistant solutions, to prevent such security breaches.
Sources: Hypefresh
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