Police warn of cryptocurrency account breaches via compromised e-mails

SINGAPORE – The police are urging individuals who trade in cryptocurrency and whose e-mail accounts have been hacked recently to stay alert to data breaches and review their e-mail security regularly.

This follows a rise in cryptocurrency accounts being compromised since mid-August following unauthorised access to victims’ linked e-mail accounts.

In an advisory on Sept 12, the police said that investigations reveal that several of the affected e-mail accounts had previously appeared in data breaches on other platforms, meaning that victims’ credentials may have been exposed.

“Perpetrators may have exploited this by using the compromised e-mail credentials to access victims’ cryptocurrency accounts, taking advantage of victims who reused the same passwords across multiple online services,” the authorities said.

It is likely that scammers may have first searched the e-mail accounts to identify cryptocurrency platforms or exchanges victims used.

They then created inbox rules to automatically archive, forward or delete e-mails from cryptocurrency exchanges to avoid detection.

The scammers could also initiate password reset requests for cryptocurrency accounts and intercept the reset links, one-time passwords (OTPs) or verification e-mails sent to the victim.

Credentials obtained through previous data breaches could also be used to gain access to cryptocurrency accounts where the same password has been reused.

To avoid such breaches, the police advised the public to use strong passwords and enable Multi-Factor Authentication (MFA) or Two-Factor Authentication (2FA). They should avoid reusing passwords.

They should also regularly review the security settings of their e-mail accounts, like checking for unauthorised inbox rules or any suspicious activity.

If account credentials have been exposed, change the password immediately.

With regard with cryptocurrency accounts, the police urged users to regularly review their transaction history and enable account activity notifications.

Should there be a compromise of e-mail or cryptocurrency accounts, they should contact their e-mail service provider and cryptocurrency exchange immediately to secure or freeze their accounts.

The next steps would be to change passwords, check for suspicious activity and remove any unauthorised trusted devices, recovery methods, or authentication methods linked to their account.

The police also urged anyone with information relating to such crimes to call the police hotline at 1800-255-0000, or submit it online at www.police.gov.sg/i-witness.