LocalBitcoins Hacked, Security Breach Allowed Unauthorized Transactions

LocalBitcoins detected a security breach that allowed "Unauthorized sources" to access and send transactions from a number of affected accounts.

There have been six confirmed cases of the breach.

In the latest crypto hack, peer-to-peer trading service LocalBitcoins was breached on Jan. 26th at approximately 10:00 UTC, according to a statement from the company.

LocalBitcoins is a peer-to-peer trading service that facilitates bitcoin trading without the use of a structured bid/ask order book.

Unlike other exchange services, cryptocurrency doesn't need to be held on the platform for buyers.

Sellers may need to use LocalBitcoin's internal wallet system for the platform's escrow services.

Sellers pay a 1.00 percent fee for every completed trade, and the service is free for buyers.

CryptoSlate reached out to LocalBitcoins for more clarity around the breach and has yet to receive a response.

As with many services online services, LocalBitcoins recommends users enable two-factor authentication to prevent unauthorized account access, in the case of a future breach.

Unlike other financial services, it is ultimately up to the user to educate and protect themselves against hacking.