A hacker has recently stolen a significant amount of digital assets from friend.tech users through SIM-swapping attacks, amounting to approximately $385,000 worth of losses within the past 24 hours. This alarming trend has raised concerns about the vulnerability of users’ accounts and the need for enhanced security measures.
ZachXBT, a blockchain expert, shed light on the situation through a post on X. He disclosed that the scammer managed to exploit four different friend.tech users by SIM-swapping, resulting in the theft of 234 ETH over the same 24-hour period.
“Got sim swapped. Apparently, dude was able to do it from an Apple store and switched it to an iPhone SE. Don’t buy my keys, that wallet is compromised,”
@sumfattytuna, a victim of the recent SIM-swap attacks, shared their experience on X. They revealed that their phone number was exploited to gain unauthorized access to their friend.tech account, emphasizing the importance of securing one’s digital assets.
The Growing Threat and Impact
These recent incidents of SIM-swapping attacks have highlighted the severity of the problem. Earlier this week, another group of friend.tech users fell victim to the same attack, resulting in the loss of approximately 109 ETH. Manifold Trading, a company specializing in developing tools for the industry, estimates that $20 million out of friend.tech’s total locked value of $50 million is currently at risk.
“If you assume 1/3 of FriendTech accounts are connected to phone numbers, that’s $20M at risk from sim-swaps,”
The company also expressed concerns about friend.tech’s current security setup, as it potentially allows a rogue developer to reconstruct private keys using Shamir-Secret-Sharing shares from user data in the database. This puts the total value locked (TVL) on the platform at risk.
Enhancing Account Security Protocols
To mitigate the risks associated with SIM-swapping attacks, Manifold Trading recommends that friend.tech reinforces its account security protocols by implementing two-factor authentication (2FA). This additional layer of security would provide users with enhanced protection against unauthorized access to their accounts and minimize the potential for theft.
Friend.tech offers users the opportunity to acquire “keys” that grant entry into exclusive chat rooms with specific individuals. This unique feature has contributed to the platform’s growth in terms of user base and protocol fees.
Despite the challenges posed by recent security breaches, friend.tech has experienced substantial growth and transactional activity. According to Dune Analytics, the total protocol fees have exceeded 11,764 ETH (worth over $19 million), with 9,870,682 cumulative transactions. September 14 witnessed a record-breaking day with ETH 616 in fees recorded, indicating the popularity and usage of the platform.
The platform has also attracted notable figures from the crypto and content creation industry, such as Cobie, HsakaTrades, Grayson Allen, and Garry Tan. This strategic move has not only bolstered the user base but also brought along dedicated followers from various platforms.
In an effort to further expand its user base, friend.tech has successfully enticed creators from platforms like OnlyFans by offering them access to exclusive content and private group chats. The platform’s model recognizes the influential role that content creators play in the success of crypto startups.
Operating on Coinbase’s blockchain network Base, friend.tech has injected new life into a chain that was plagued by token scams. The platform’s rapid increase in activity, partly driven by automated trading bots seeking to capitalize on its success, even propelled Base to momentarily surpass Ethereum in terms of transactions per second.
