A Phishing Scheme Gone Awry

In a tale that reads like a thriller novel but unfortunately is all too real for BitPay, the company lost 5,000 bitcoins—worth over $1.8 million—due to a phishing scam that began with a seemingly innocent email. The unfortunate target? Their chief financial officer, Bryan Krohn.

The Setup: A Deceptive Email

Last December, Krohn received a message that appeared to come from a reputable online digital currency publication. The email claimed to seek his insights on a Bitcoin-related document. But alas, this was not a journalist but a cunning hacker in disguise. The hacker, having taken control of a computer, directed Krohn to a bogus site that requested his login credentials for BitPay’s corporate email account.

Operation: Hack and Transfer

Once armed with Krohn’s credentials, the hacker accessed his BitPay email and began playing CEO by crafting emails that looked exactly like they came from Krohn himself. Our cyber villain sent an email to BitPay’s real CEO, Stephen Pair, requesting a transfer of 1,000 bitcoins. With trust planted firmly in the hacker’s hands, Pair complied.

Rinse and Repeat

The scam didn’t end there. After the hacker successfully executed the first scam, they asked for an even larger transfer of 3,000 bitcoins. Pair, having double-checked with what he thought was Krohn, fell for the second request as well. This was like deja vu but not the pleasant kind where you suddenly remember that you forgot to send your mom a birthday card.

The Downfall: A Twisted End

The truth started to unravel when Pair copied a real customer about the final transfer. The customer, unaware of the internal chaos at BitPay, replied, stating no such order existed for those 3,000 bitcoins. Talk about a plot twist!

Insurance Claims: A Tough Nut to Crack

Now, it’s not a usual Friday if you don’t have to wrestle with an insurance claim after a cyber heist. BitPay made a claim for $950,000 with their insurance company, Massachusetts Bay Insurance, but it was promptly denied, leading to legal action. The insurer argued that the scam stemmed from Krohn’s gullibility and not from a breach of BitPay’s systems. Sounds a bit like blaming a victim for not spotting a wolf in sheep’s clothing.

Lessons Learned

• Beware of phishing attempts. If it smells fishy, it probably is.
• Always double-check, especially large transactions.
• Ваши аккаунты могут быть взломаны по простой причине отсутствия бдительности.