If you own a Ledger, beware: a new leak has exposed user data, and here's what we know.

ZachXBT reported on a security breach at Global-e that compromised the personal data of Ledger users. We analyze how this leak reignites the risk of social engineering attacks in the digital ecosystem.

The digital asset ecosystem began the week under a high-level security alert following a public complaint made this Monday by Zach XBT, one of the most respected on-chain researchers in the industry. His recent security report has raised alarms in the self-custody community, as Ledger, the world's leading manufacturer of cold wallets or hardware wallets, faces a new exposure of its customers' data.

While, Users' cryptocurrencies remain intactSince the problem doesn't affect the Ledger hardware or private keys, yes affected sensitive personal information of the users of these crypto wallets. 

According to reportThe security breach occurred in Global-eLedger, the external payment processor it uses to manage its international sales, has been compromised. Thus, although users' private keys remain intact, the leak has exposed personal information, such as full names, email addresses, phone numbers, and physical addresses...from an as-yet-undetermined number of users. And this scenario reignites the worst privacy nightmares in the sector, reminding us that in the crypto world, physical security is just as vital as digital security.

Global-e has confirmed the incident after detecting "unusual activity" on its systems, and proceeded to notify affected users via email on Monday. 

The "Achilles' Heel": Risks in the Supply Chain

This recent security incident highlights an uncomfortable and complex reality within the cryptocurrency industry. Users often invest in state-of-the-art hardware devices, designed with secure element chips, to maintain the security of their cryptocurrencies. private keys of their assets beyond the reach of hackers. However, the paradox lies in the fact that to acquire these anonymity and security devices, the user must interact with the traditional financial system and e-commerce, leaving an indelible digital trail.

The breach at Global-e underscores that a product's robustness depends not only on the primary manufacturer but also on the integrity of its entire supply chain. By outsourcing payment processing and shipping logistics, companies like Ledger share critical databases with third parties. These points of intersection become prime targets for cybercriminals who, while knowing they cannot break Ledger's encryption, can attack the weakest link: the vendor database containing the owner's identity.

So, although the financial assets stored on the physical device are not at direct technical risk—because a hacker cannot extract funds using only the owner's name and address—, The investor's personal safety is indeed compromised. 

By linking a real-world identity to the possession of a crypto storage device, criminals obtain a map of high-value targets, assuming that the people on that list possess digital assets and, therefore, capital.

Social Engineering: The Silent Threat Behind the Data Leak

The most dangerous consequence of this data leak is not the immediate theft of funds, but the preparation of the ground for high-fidelity social engineering campaignsWith access to names, phone numbers, and purchase details, attackers can design extremely convincing scams.

Unlike generic spam, affected users could start receiving personalized communications. that seem legitimateImagine receiving an email with the official Ledger logo, addressing you by your full name and quoting your actual order number, falsely warning you that "your device has a firmware bug and you must validate it immediately." This level of detail is what makes users let their guard down.

According to experts, users affected by this data leak could receiving emails that impersonate technical supportrequesting the 24 words of the seed phrase under the pretext of urgent security. Furthermore, they could be subject to SIM Swapping attacksThis is because, with the phone numbers exposed, attackers could try to duplicate the victim's SIM card to intercept two-factor authentication (2FA) codes from other services, such as centralized exchanges or emails.

Finally, the possibility of not being ruled out suffer telephone and physical harassmentIn the worst-case scenario, exposing physical addresses can lead to extortion attempts or kidnapping threats, although these cases are statistically less frequent.

In response to the data breach, the community reacted swiftly thanks to ZachXBT's timely report and subsequent confirmation from Global-e. External forensic teams are currently working to determine the exact extent of the intrusion and close the breaches, but for the data already exfiltrated, the damage is irreversible.

How to protect your privacy and security against data leaks

When faced with the exposure of personal data, the best strategy for any user is to maintain a mindset of “Zero trust.” In other words, assume that your contact information could have fallen into the hands of malicious third parties and act with caution. This implies carefully review each message received y Be wary of any communication that creates pressure or urgency. to make quick decisions.

Cybersecurity experts emphasize that no official manufacturer, whether Ledger, Global-e, or any other company in the sector, will request the 24-word recovery phrase through any digital or telephone means. This code is only entered directly into the physical device, and never on a website or in an email formAny attempt to obtain it under the guise of protecting your funds should be considered a scam.

Finally, this incident highlights the importance of a layered defense when it comes to protecting financial privacy. More cautious users opt for dedicated email accounts for crypto transactions, separate postal addresses for deliveries, and advanced authentication mechanisms such as physical security keys. Protecting digital assets doesn't end with disconnecting the wallet from the computer; it requires meticulous management of one's digital footprint across the board.