Bits of Gold Probes Data Breach That May Expose Customer Info

Bits of Gold, Israel's regulated crypto broker, is investigating a cyber incident that may have exposed customer identity and financial information. The breach stemmed from unauthorized access to a third-party system used for support and data analysis.

The company notified customers on Aug. 16 and said it had blocked the access, disconnected the affected system from its information sources and informed relevant authorities, Calcalist reported. Bits of Gold said its review indicates "there may have been access to certain personal information," including names, ID numbers, emails, phone numbers, IP addresses, bank account details and public crypto wallet addresses. Digital assets, account passwords, scanned ID documents, full credit card numbers and CVV codes were not affected, the company said. So far, "there is no indication" that the potentially exposed information has been used.

The incident was part of a broader cyber event involving a software company Bits of Gold uses, along with other businesses worldwide. Calcalist reported that hundreds of companies may have been affected and that Bits of Gold was not believed to have been a direct target. The software provider has not been publicly identified.

Reports circulating Sunday put the potentially affected customer count at roughly 200,000. That figure should be treated cautiously. The customer notice reproduced by Calcalist does not state how many records were accessed. Bits of Gold's website lists more than 300,000 customers, and the company has not publicly confirmed that 200,000 people were affected.

The main immediate risk is social engineering, not theft from wallets through the reported incident itself. Names, phone numbers, emails, banking information and public wallet addresses could give attackers material for more convincing messages impersonating Bits of Gold, a bank or another financial service. Bits of Gold specifically warned customers about phishing and impersonation attempts.