Data Breaches & Cryptocurrency: Are You at Risk?

Our increased reliance on online business transactions has made it easier than ever for malicious cyber actors to infiltrate an organization’s network and steal sensitive information. Your personal information, such as your name, birthday, and other identifying data, can be used against you in a very damaging way, which is why we see data breaches and other cyber-crimes occur so frequently. Anyone with access to the internet and a decent computer can essentially steal thousands of dollars worth of confidential consumer data, and these actors are getting more sophisticated every day. However, there’s another risk that many individuals are unaware of: cryptocurrency theft. 

The platforms where users store their crypto assets have a sizable target on their backs because of the potential profit a hacker can make if they manage to gain access. Unfortunately, bZx, a decentralized autonomous crypto wallet organization, was the subject of one of these malicious attacks after a developer fell for a phishing scam, losing $55 million from customer accounts. bZx has outlined a compensation plan that would help its users recoup some of their lost assets, but the victims are describing their response as “woefully inadequate.” These individuals lost thousands of dollars because a developer clicked the wrong link, but the burden isn’t theirs to bear. No one should face significant financial losses because of an organization's negligence, but by teaming up with an attorney, you won’t have to. 

Morgan & Morgan’s attorneys are beginning to file lawsuits on behalf of the victims, but we need your help. The more victims that come forward about bZx’s negligence, the more likely we are to reach a favorable verdict that fairly compensates everyone. Contact us today to see if you qualify, and read on for more information:

Are Cryptocurrency Platforms at Risk of Data Breaches?

Any organization that does business online has records of each transaction within their databases, making them an easy target for someone looking to steal sensitive information. Cryptocurrency platforms are even more of a target because they contain valuable financial assets and associated customer data, which can be stolen and sold for a profit. While many crypto platforms prioritize network and data security, for this reason, many others fail to do so, opening up a world of risk for anyone who submits information to their platform. If someone manages to gain access to the platform's databases, they can steal customer information, their login credentials, or their crypto assets. This is seriously damaging for anyone who stores significant amounts of cryptocurrencies within the platform, and in the case of bZx, many users had their savings disappear overnight. 

Although the consequences of a cryptocurrency data breach are more significant than the traditional data breach, users have the same protections as they would if it occurred to any organization. If you experienced financial hardship as a result of a cryptocurrency platform’s negligence, you could be eligible to join the lawsuit and recover damages. No one should be forced to lose their savings because of someone else’s negligence, and our attorneys are here to ensure that you’re compensated fairly. 

How Can I Keep My Cryptocurrency Safe?

Cryptocurrency is highly sought after, so it’s best to store it in a safe location to avoid unauthorized access. If you plan on keeping your assets online, you should research the platform you’re looking to use thoroughly to ensure that the organization prioritizes safety and security. You should avoid any platform that doesn’t use two-factor authentication, identity verification, or other security measures, as these organizations are a data breach waiting to happen. Additionally, you have the option to store your cryptocurrency in an offline, “cold” wallet. These wallets are physical devices that aren’t connected to the internet, which prevents anyone from accessing the contents except for the owner of the physical device. While this does add a degree of difficulty in buying, selling, and trading crypto, it’s the safest option for anyone who’s worried about someone stealing their financial assets. 

How Can an Attorney Help After a Data Breach?

Data breaches are complicated, confusing, and very frustrating, but an attorney can help you get back on your feet with ease. Our attorneys have seen your situation before, allowing them to use their knowledge, expertise, and experience to help you recover from the damage as soon as possible. They’ll advise you on ways to mitigate the damage, such as checking with your financial institutions, monitoring your credit card statements for evidence of fraud, and canceling compromised credit/debit cards. If you find that you’re already a victim of financial crimes, they can help you fight back against them, ensuring that your best interests are placed at the forefront of the process. 

An attorney can also help you join any existing lawsuits against the negligent party that caused the data breach. Our team is beginning to file lawsuits on behalf of the victims of bZx, as the developers should have exercised more caution to avoid falling victim to a phishing scam. Their negligence caused users to lose a collective $55 million in assets, but we’re here to ensure that every victim is compensated to the fullest extent. bZx might believe they can escape the liability of their negligence with a lackluster compensation plan, but with Morgan & Morgan on the case, it’s only a matter of time until they’re held accountable. 

Contact Morgan & Morgan

In the most difficult moments of your life, Morgan & Morgan has your back. If you were harmed by bZx’s negligence or find yourself as the victim of another data breach, our attorneys are only a phone call away. We’ll stand by your side from beginning to end, giving you the best possible chance of recovering what you’re entitled to. 

Contact us today to get started.