Bitcoin ATM manufacturer and software provider, General Bytes has said it will compensate its Cloud-based clients who lost money from a zero-day attack.
As previously reported, General Bytes experienced a security breach in form of a zero-day attack in the middle of March. The attacker identified a security hole in the master service interface, which Bitcoin ATMs utilize to upload videos to servers, based on the information provided.
Using this security flaw, the attacker uploaded his application directly to the application server used by the admin interface. Consequently, he was able to send funds estimated at $1.5 million from hot wallets, download usernames and passwords, and turn off two-factor authentication.
Following the attack, the ATM manufacturer immediately shut down its Cloud service and asked users to create their own Standalone servers. Additionally, General Bytes advised users to keep their details confidential and pledged to help customers transfer their data from the firm’s Cloud service to the operator’s standalone servers as needed.
General Bytes recently stated that it has taken immediate actions to prevent additional illegal access to its systems and working relentlessly to protect customers.
Notably, this is not the first time the ATM maker is coming under attack. In August 2022, General Bytes announced that its ATMs were breached by an unknown hacker. At the time, the breach occurred while users were trying to perform deposit transactions.
The hacker was able to change the two-way machine’s crypto settings in tandem with his wallet settings and the setting for an incorrect payment address.
Why BTC ATMs are Susceptible to Attack
While Bitcoin ATMs have grown in popularity in nations such as Canada and Uruguay due to accessibility and convenience, they can be vulnerable to attacks due to several reasons which include lack of regulation, internet connectivity, and lack of security standards.
Since most nations currently do not regulate bitcoin ATMs, it is easier for attackers to take advantage of security flaws and carry out fraudulent actions. Additionally, Bitcoin ATMs lack a widely recognized security standard, in contrast to conventional ATMs.
This implies that different operators may apply different security measures, making some Bitcoin ATMs more vulnerable than others.
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