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On July 14, 2024, blockchain identity platform <a href="https://web.fractal.id/fractal-id-data-breach-post-mortem/" rel="noopener noreferrer nofollow">Fractal ID detected</a> unusual activity, signalling a data breach. The company quickly identified the attack and managed to contain it within 29 minutes. Nevertheless, data exfiltration for roughly 0.5% of its user base was caused by the attack.The incident from 2022 was <a href="https://www.infostealers.com/article/infostealer-infection-results-in-data-breach-of-blockchain-identity-platform-fractal-id/" rel="noopener noreferrer nofollow">linked</a> to the breach. An employee had reused a compromised password, facilitating the attack. This employee, with three years of tenure and admin rights, failed to adhere to security policies, allowing the attacker to bypass internal data privacy systems. Despite the breach, system monitoring enabled swift action, locking out the attacker promptly.<h3 id="strong-compromised-credentials-strong">Compromised Credentials</h3>The compromised account belonged to an operator whose machine was infected with the Raccoon ‘infostealer’ malware in September 2022. According to <a href="https://www.sans.org/cyber-security-courses/cybercrime-intelligence/" rel="noopener noreferrer nofollow">cybercrime intelligence</a> firm Hudson Rock, the malware infection occurred due to the reuse of credentials from past hacks. Fractal ID emphasized in their postmortem that the operator did not follow operational security policies and training, leading to the breach.Fractal ID responded by disabling all accounts in the compromised system and limiting access to senior employees. They implemented new security measures, including request throttling, finer-grained authorization, tighter monitoring of failed authentication attempts, and stricter IP control. Moreover, the company contacted data protection authorities and the cybercrime police division in Berlin. Additionally, they engaged <a href="https://cryptonewsland.com/microsoft-chooses-aptos-as-partner-for-web3-defi-openai-services/" rel="noopener noreferrer nofollow">cybersecurity services</a> to monitor for any potential distribution of stolen data.Read more:<a href="https://cryptonewsland.com/fractal-id-suffers-data-breach-postmortem-report-details-incident/" rel="noopener noreferrer nofollow">https://cryptonewsland.com/fractal-id-suffers-data-breach-postmortem-report-details-incident/</a>

Fractal ID Suffers Data Breach: Postmortem Report Details Incident

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