CoinStats Security Breach: Users Targeted with Scam Notifications and Shady Website

CoinStats, a popular portfolio tracker for cryptocurrency users, recently experienced a security breach that left many of its users vulnerable to a scam. The breach occurred late into Saturday when iOS and Android users started receiving notifications claiming they were eligible for rewards. However, clicking on the notifications led them to a shady website asking them to download another application to receive the rewards.

After receiving reports from users, CoinStats quickly updated its users about the situation, apologizing for the inconvenience and assuring them that they were investigating the issue. A few hours later, CoinStats confirmed that they were experiencing a security incident that affected wallets created directly within their platform. They advised users to move their funds immediately if they had their private keys exported.

The security incident only impacted users who used wallets created on CoinStats, not wallets from external providers connected to the platform. CoinStats, known for simplifying the management of cryptocurrency holdings and investments, has gained immense popularity for its user-friendly interface.

Following the confirmation of the breach, CoinStats took swift action to mitigate the attack and temporarily shut down the application to isolate the security incident. They reported that only 1.3% of all CoinStats Wallets were affected, totaling 1,590 wallets. A Google Doc was linked in a post for users to check if their wallets were impacted and move their funds elsewhere.

While CoinStats continues to investigate the extent of the damages caused by the breach, they have assured users that it will not be significant. However, one user claimed that funds from their external wallet were drained due to the breach. CoinStats has switched user wallet settings to read-only and will provide updates on the situation as they uncover more information.

As CoinStats works to address the security breach and ensure the safety of its users’ funds, the cryptocurrency community is eagerly awaiting further updates to understand the full extent of the attack.