According to coinpedia.org, KuCoin has more than 27 million users around the world, as well as 2.4 million followers on Twitter. The company lost control of its social media account for around 45 minutes from 00:00 Apr 24 (UTC+2). During that time, those responsible for the hack posted fake promotional activities that caused several users to lose their assets.
Reportedly, KuCoin’s fake Twitter activity facilitated about 22 transactions involving Bitcoin and Ethereum. Even though the KuCoin team managed to regain control of the account by working with Twitter’s support team, assets amounting to about USD 22,628 were lost to the attackers.
KuCoin promised to reimburse the funds for all affected and verified customers, and in order to prevent such incidents in the future, the company implemented a few other security measures in addition to two-factor authentication. In a Twitter post, the company revealed that it is conducting a thorough investigation of the incident with Twitter to prevent such attacks going forward.
KuCoin officials will keep users updated on the progress of the investigation, but they did ask them to refrain from opening any links that impersonate the KuCoin domain. Coinpedia.org reports that the exchange has around USD 2.9 billion worth of reserves that are publicly available for review. Furthermore, KuCoin reported a 24-hour trading volume of approximately USD 2 billion from more than 750 listed crypto tokens.
In January 2023, KuCoin announced the launch of a new suite of anti-fraud solutions to strengthen its customer security. This new product includes an advanced innovative anti-phishing verification, a business wallet address verification, as well as official contact verification.
When combined, these features can help to detect, reduce and eliminate the potential of online risks, such as fraud. The set of anti-fraud services aims to improve user experience by protecting important assets and offering a comprehensive set of measures that will make any action more secure and efficient.
A particularly noteworthy feature on the official media and wallet verification portal is the anti-phishing verification program. Through this service, all conversations between the KuCoin team and businesses will be protected by an 8-digit number that is created by the business itself. This step will happen during the listing application filling process, to verify its authenticity.
Aside from the anti-phishing feature, companies can also leverage an official contact verification tool. With this tool, if a user questions the authenticity of an individual claiming to be from KuCoin, they can verify the company’s information such as its email address, social media accounts, and phone numbers.
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