The Bitcoin payment processor has suffered a major loss of 1.8 Million dollars, after an hacker successfully phished the Chief Financial Officer of the Bitpay company. The hacker claimed to be the CEO of BitPay and demanded from the CFO Bryan Krohn to transfer 5000 bitcoins in total to an client of BitPay.
The CFO which was targeted by the cybercriminal, was lured to an external malicious phishing website which in order harvested all types of personal information which would allow the cybercriminal to gain access to the BitPay environment.
The cybercriminal acted like the CEO of BitPay, which in order granted the illusion for the CFO that he was dealing with the legitimate CEO of BitPay. The cybercriminal forced the CFO to transfer 5000 bitcoins in 3 transactions.
- The first transaction was an transaction of 1000 Bitcoins.
- The second transaction was an transaction of another 1000 Bitcoins.
- The third and final transaction was an transaction of 3000 Bitcoins.
BitPay has claimed that the insurance has to cover 950 000 dollars, but the insurance company has replied that they will refuse the payout as the attacker did not gain access to the BitPay system or device.