Amid the rising popularity of social finance platforms and the increasing challenges faced by the crypto industry, security breaches remain a pressing concern.

What Happened: In a recent incident, friend.tech wallet fell prey to a phishing scam, resulting in the loss of 22 Ether (CRYPTO: ETH) (valued at $34,800) from a user's account. This was subsequently transferred via Orbiter, as confirmed by Binance. The unfortunate trader, identified as @yyctrader1, lost his entire ETH holdings due to this attack, with some of the stolen ETH ending up in Binance. The trader has since sought help from the exchange, with PeckShieldAlert being the first to report on the scam.

Also Read: Friend.tech Sees Traction, Revenue Zooms With Sniper Bots Contribution Significant

The trader was duped into the scam as the hacker pretended to be from FriendMEX and shared a common server with the former. Based on screenshots shared by the victim, the individual behind the scam used the name Charlie (FM) and had nine mutual servers with @yyctrader1 inclining the latter to a suggested sponsorship collaboration.

Users are alerted to avoid any email, message, or link that seems doubtful to protect their wallets.

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Friend.tech was launched in August 2023 as a decentralized social network on the Base Network. Recently, the platform added a layer of security with a Two-Factor Authentication feature. Other Social finance platforms include Stars Arena, Alpha on the Bitcoin network, Friendzy on Solana, and PostTech on Arbitrum.

Recent Mishaps With Friend.tech

Last week, friend.tech platform users were put on high alert after a recent spike in SIM-swap attacks led to the loss of almost 109 Ethereum (almost $178,000 in value) from four users in less than a week. These attacks involved harmful actors gaining control of a user’s mobile number, enabling them to intercept two-factor authentication codes, thereby compromising the victim’s accounts.

Crypto investment firm Manifold Trading believes that almost $20 million is at risk if around 33% of friend.tech accounts are linked to phone numbers, as reported by Cryptopolitan. Security setups for the platform should be the top priority for the safety of users and their funds. A suggestion by the firm is giving users the option to switch from phone number-based to email-based logins and allowing the use of third-party wallets.

Benzinga's Future of Digital Assets conference is scheduled for Nov. 14. Attend and learn more about experienced traders on crypto. The gathering is seen as pivotal for the digital assets’ community. The event will spotlight the latest trends, innovations, and challenges in the digital asset realm.

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