TL;DR
Betterment says attackers used social engineering to access some company systems on January 9 and obtained personal information for an undisclosed number of customers. The intruders sent a crypto-themed phishing notice to some users; Betterment says no accounts or login credentials were accessed and an investigation is ongoing.
What happened
Betterment disclosed that hackers gained access to portions of its systems on January 9 through a social engineering incident that involved third-party platforms the company uses for marketing and operations. The company says the attackers were able to view customer names, email and postal addresses, phone numbers and dates of birth. Using that access, the intruders sent a fraudulent crypto-related message to some customers claiming they could triple crypto holdings by sending $10,000 to a wallet controlled by the attackers. Betterment reports it detected the activity the same day, revoked unauthorized access and opened a probe with the assistance of an unnamed cybersecurity firm. The company contacted the customers targeted by the scam and advised them to ignore the message. Betterment has not disclosed how many people were affected; it also maintains that no customer accounts, passwords or other login credentials were accessed.
Why it matters
- Personal data exposure can enable further scams or identity-based fraud against customers.
- Attackers used social engineering tied to third-party vendors, highlighting risks from external service providers.
- The incident involved a crypto-oriented lure, underscoring targeted phishing risks for users of digital-asset features.
- Limited public detail about scope and vendor involvement reduces transparency for customers and regulators.
Key facts
- Attack date reported as January 9.
- Method described as a social engineering attack involving third-party platforms used for marketing and operations.
- Types of customer data exposed: names, email addresses, postal addresses, phone numbers and dates of birth.
- Hackers sent a fraudulent message promising to triple crypto value if victims sent $10,000 to an attacker-controlled wallet.
- Betterment says it detected the incident the same day, revoked the unauthorized access and launched an ongoing investigation with an unspecified cybersecurity firm.
- Company states no customer accounts or login credentials were accessed.
- Betterment has not disclosed how many customers were targeted or how many had data accessed.
- The company posted an announcement on its security incident page, which currently contains a 'noindex' tag that hides the page from search engines.
- Representatives did not immediately respond to external requests for additional comment.
What to watch next
- not confirmed in the source: whether Betterment will identify the third-party platforms or vendors involved.
- not confirmed in the source: any disclosure of how many customers had data accessed or were targeted.
- not confirmed in the source: findings and remediation steps from the ongoing investigation or any regulatory notifications.
Quick glossary
- Social engineering: A range of techniques that manipulate people into revealing information or taking actions that compromise security, often through deception or impersonation.
- Phishing: A form of online fraud in which attackers send deceptive messages to trick recipients into revealing sensitive information or transferring funds.
- Crypto wallet: A software or hardware tool that stores the cryptographic keys needed to access and transfer cryptocurrency; control of a wallet equates to control of its funds.
- Noindex tag: A directive added to a webpage's source that tells search engines not to include the page in search results.
- Third-party platform: An external service or vendor that a company uses for functions like marketing, operations or analytics, which can introduce additional security dependencies.
Reader FAQ
Were customer accounts or passwords accessed?
Betterment says no customer accounts were accessed and that no passwords or other login credentials were compromised.
What types of customer data were exposed?
According to the company, exposed fields included names, email and postal addresses, phone numbers and dates of birth.
How many customers were affected?
not confirmed in the source
Did Betterment name the third-party platforms involved or identify vendors?
not confirmed in the source
Automated investment platform Betterment has confirmed that hackers broke into some of its systems last week and accessed the personal information of an undisclosed number of its customers. In an…
Sources
- Fintech firm Betterment confirms data breach after hackers send fake crypto scam notification to users
- Betterment's financial app sends customers a $10000 …
- Betterment Warns Users of Fake Crypto Triple-Return …
- Betterment users hit by classic crypto giveaway scam
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