US-based Online Crypto Tax Service Compromised; Hacker Accesses Data From Over 1000 Users

2020-8-26 19:07

Cryptotrader.Tax was compromised by a hacker who managed to access the data of over 1,000 users of this online tax calculation and filing service. Coindesk reported yesterday that the hacker was able to break into the Cryptotrader.Tax ecosystem through an employee’s account in the marketing and customer service department.

The hacker accessed sensitive information, including personal data such as clients’ names, email addresses, and messages with details on crypto incomes, and payment processor profiles. According to the report, they then preceded to sell affiliated screenshots on the dark web upon which the news was leaked to crypto media.

Following this development, Cryptotrader.Tax Co-founder and CEO, David Kemmerer, confirmed that indeed their system had been compromised on April 7. Kemmerer further reiterated that the hacker had gained access through an employee’s account, noting that they also downloaded a file with around 13,000 rows of information hence the leaked customer data.

He was, however, keen to reassure that filing account passwords were not breached according to a security review done by the Cryptotrader.Tax team. It is also noteworthy that the platform’s website was not compromised as well. Kemmerer highlighted that the Cryptotrader.Tax security team had since taken appropriate measures such as improving monitoring and alerting affected parties.

Despite this recent shake-up of the Cryptotrader.Tax ecosystem, this platform currently proposes significant value in a niche where ambiguity reigns. The project is a Coin Ledger subsidiary and based in Kansas City; its value proposition favors crypto traders in tax reporting. Cryptotrader.Tax enables its clients’ to import trades from over 36 digital asset exchanges. The platform then generates TurboTax compatible reports as per the underlying crypto income gains and losses.

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