LocalBitcoins Averts Phishing Scam, Resumes Regular Activity

LocalBitcoins Avert Phishing Scam, Resume Regular Activity

Outgoing transactions on peer-to-peer Bitcoin exchange LocalBitcoins resumed on 27 January following the shutdown of a phishing scam that exploited a weakness on the platform’s official forum.

A community manager from the exchange first warned of the phishing site on Reddit on 26 January, notifying users to be aware when visiting the forum if their computers requested them to log in to the website as if they had logged out. The post read: ”This is a PHISHING SITE and 2FA codes are being used to empty customer accounts.”

Further, the post claims the vulnerability had been identified and contained in third-party software. Six cases of users being affected had been reported at the time of the Reddit post.

Before the scam could be suspended, the hackers emptied BTC 7.95205862 (approximately USD 28,100) from five separate transactions. The address of the alleged hackers has been reported as 13WaahhsiGph4ysmQtjVhVTdgQUSL62KJr. LocalBitcoins is now fighting to have the address blacklisted from exchanges. However, the funds have already been emptied out to other addresses, and appear to have continued to be shifted.

While outgoing transactions from the platform have resumed, the official forum remains disabled until further notice. Comments on the Reddit thread from the LocalBitcoins community manager affirm that no know-your-customer data was compromised during the event.

 

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