- In the breach of Fractal ID, at least 8 cryptoprojects may have been affected.
- This breach puts Polygon, Ripple and NEAR at risk.
Gnosis Pay Polygon. Ripple, NEAR, and other crypto-projects were recently affected by the data breach that occurred in Fractal ID. Fractal ID is a popular verification service. Gnosis Pay notified its customers of the data breach via an email sent to them on Wednesday.
The Fractal ID Breach: Dissection
This email was read. “At 7:30 PM CET, Monday, 15th July 2024, our Know Your Customer (KYC) service provider Fractal ID made the Gnosis Pay team aware that it had suffered a data breach on Sunday 14th July 2024.”
Julian Leitloff confirmed the exploit and said that suspicious activities were noticed in a single account. According to the Fractal ID platform, the hack affected approximately 0.5% of its 1 million users. official X account. Leitloff did acknowledge that external help was used to identify the problem and stop the access.
A malicious third party gained access to an Operator’s account on Sunday, 14th July 2024. The team responded quickly but approximately 0.5% was affected.
Our first line of responsibilities lies with the users…
— FRACTAL ID (@Fractal_ID) July 17, 2024
However, only 0.5% of Gnosis users were affected. Information contained within the Fractal ID user profile may be compromised. This data may include information like wallet addresses, email addresses, phone numbers, and images of uploaded documents.
Leitloff said that Gnosis was not specifically targeted in the attack, but rather the attacker’s access to their account. “The system itself was not impacted but this account, meaning every user that account had access to,” Leitloff noted.
Recent attacks have raised safety concerns for Fractal services and in general. The breach was reported by X user, @arlery. stating, “Fractal KYC requires showing proof of ID and residence proof, etc. I used this for Optimism retro KYC and Thrive/Arbitrum KYC. The fact that they’ve been compromised is so alarming.”
Fractal, on the other hand, has promised to implement additional security measures and take immediate action to minimize any impact from a data breach. The platform has also informed both the Cybercrime Police Division and data protection authorities of this recent incident.
Fractal ID provides an interoperable, Decentralized Identity System for Web3. Fractal ID stores and collects personally identifiable information, which is sensitive data about the user. This includes KYC services and Anti-Money Laundering. Fractal ID’s website states that it provides compliance assistance to at least eight crypto protocol companies, such as Polygon, Ripple and Near.
Decentralized Identity for Verification is on the Rise
Decentralized identity is now being integrated into many blockchain infrastructures. The effort to integrate decentralized identity is made in the transition of the dApp layers into the infrastructure. The oracles are similar to wallets.
You can also read about the advantages of using noted As we mentioned in an earlier article, Hedera has partnered with Tuum Technologies on the integration of Identity Snap into MetaMask. This collaboration is aimed towards developers that are interested in developing Digital Identifiers, Verifiable Credentials or MetaMask on the Hedera platform.
IOTA collaborated recently with Taiwan’s government in a similar way to introduce decentralized ID. As highlighted As we stated in an earlier blog, this partnership comes after IOTA and the European Union previously collaborated on the EDIC Digital Identification Solution.
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Source: www.crypto-news-flash.com
