3Commas Experiences Security Breach

3Commas, a well-known crypto trading bot, offers intelligent trading solutions for investors globally.

Regrettably, the tool’s widespread use also makes it a prominent target for malicious actors, who occasionally succeed in their efforts to obtain user information – or even the bot’s API data.

Fortunately, the latest incident was considerably more restricted in nature.

Unauthorized Trades Reported

As the weekend drew to a close, 3Commas started receiving notifications from users who noticed that unauthorized trades were occurring on their accounts.

While the primary function of the trading bot is to facilitate automated – or nearly automated – trades, these actions typically still necessitate inputs and parameters from the user, which quickly eliminated a problem with the bot’s software.

Following an initial investigation – which will be succeeded by an internal review – the developers observed that these trades occurred shortly after the affected users had changed their passwords, indicating a data breach whose source remains unidentified.

Lack of 2FA Was The Likely Culprit

The users’ API data and passwords themselves, however, had not been compromised. Most of the impacted accounts also did not have Two-Factor Authentication enabled, which could assist the developers in identifying the attackers’ entry point more effectively.

“Our current understanding is that a security incident occurred, which presumably led to unauthorized access to customer account data. Fortunately, only a limited number of customer accounts experienced password resets and alleged unauthorized trades. The latter primarily affected customers who had not activated two-factor authentication (2FA). Please note that the data accessed did not include your API secret data and account passwords.”

Until the investigation is finalized, 3Commas developers have recommended that users change their passwords and enable 2FA if they have not already done so.

Since unauthorized trades had previously occurred shortly after a password reset, the developers instituted a temporary measure that disconnects the user from the API following a password reset.

To resume trading, a user must manually reconnect, preventing a malicious actor from taking control of their account.

Unfortunately, this incident has resulted in yet another reputational setback for 3Commas, whose user base has noted that over three security breaches have occurred in less than a year and who are understandably quite frustrated.

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