Modernizing Authentication — What It Takes to Transform Secure Access
Bitcoinica recently announced that its servers were compromised by an attacker on May 11, resulting in the theft of 18,547 Bitcoins. In its announcement, the company stated that it had suspended its operations during the investigation.
"The [announcement] went on to warn that a database storing user names, e-mail addresses, and account histories was also accessed, and it also suggested cryptographically hashed passwords may also have been compromised," writes Ars Technica's Dan Goodin. "It advised customers who reused their Bitcoinica passwords on other sites to change them. Documents used to legally verify users' identities are stored on separate servers at a separate data center with a different encryption regimen."
"In a later post on the BitcoinTalk forum, a Bitcoinica employee revealed that the problem is far more serious than initially believed," Softpedia's Eduard Kovacs. "They estimate that the entire platform will be shut down or even re-developed, [an] operation which may take months. It appears that the incident may have been a result of a compromised email server that belongs to one of the teams."
"Reports of the Bitcoinica hack came on the same day that Wired published an unclassified FBI report detailing the bureau's concerns regarding cybercriminal use of the semi-anonymous virtual currency," writes Threatpost's Brian Donohue. "As Threatpost has reported, Bitcoins, which can be exchanged anonymously, are being targeted with more frequency as well. Earlier this year, hackers compromised the cloud service provider, Linode, and emptied the bitcoin accounts of eight customers, totalling around $14,000."