Byte Federal, one of the largest Bitcoin ATM operators in the US, has suffered a serious data breach that could affect approximately 58,000 of its customers. This incident occurred as a result of unauthorized access to personal data of the company’s customers.

On December 12, Florida-based Byte Federal submitted a file to the attorney general of the state of Maine, reporting that unauthorized access to its customers’ personal data was obtained as a result of the security breach.

The company stated that it had previously detected the breach on November 18, but exactly 30 days had passed since the attack occurred on September 30. This breach was carried out by attackers who exploited a vulnerability in third-party software.

Byte Federal immediately shut down its platform after noticing the attack, assuring users that their assets or funds were not compromised. The company said in a statement that the attacker attempted to gain unauthorized access to the personal information of 58,000 customers.

This information included names, dates of birth, addresses, phone numbers, email addresses, government-issued IDs, social security numbers, transaction history and user photos.

Byte Federal announced that there was no concrete evidence of misuse of user information. Nevertheless, the company stated that it continues to take various measures to ensure the security of customer data and that necessary measures have been taken to address customer concerns.

Accordingly, Byte Federal performed a reset on all customer accounts and sent a notification to its users to announce the event. Internal passwords, password management system, tokens and keys have also been updated to prevent unauthorized access.

Byte Federal launched a forensic investigation with an independent cybersecurity team to determine the exact cause and scope of the incident. Legal investigation continues. During this process, the company instructed its customers to reset their login information and, if necessary, verify their personal data and confirm their identities.

Byte Federal currently operates 1,356 Bitcoin ATMs across the US, accounting for 4.3% of all crypto ATMs in the country, according to CoinATMRadar data.

The majority of Bitcoin ATMs in the US are operated by Bitcoin Depot. Bitcoin Depot is the country’s largest Bitcoin ATM operator, with at least 8,100 crypto exchange machines.

Bitcoin ATMs are one of the easiest methods to convert fiat currencies like US dollars into Bitcoin and vice versa without using a central exchange.

In September, the US Federal Trade Commission (FTC) issued a warning regarding Bitcoin ATMs. According to this warning, fraud cases with Bitcoin ATMs have increased by 1000% since 2020. This increase is attributed to the fact that frauds, especially those carried out through Bitcoin ATMs, are becoming more common.

Byte Federal’s data breach once again revealed how vulnerable Bitcoin ATMs can be to vulnerabilities and cyber attacks.

In this era where cryptocurrencies and Bitcoin ATMs are becoming increasingly common, such security measures and potential dangers require users to be more careful about protecting their digital assets.