The Hacker Attack on Hundred Finance: An Overview of the $7 Million Loss

04/16/2023 18:55 • Tech Ticker • 97 views

According to reports, PeckShield Inc. posted on social media that Hundred Finance was hacked and lost $7 million.

Hungred Finance was hacked and lost $7 million

In recent news, PeckShield Inc. leaked reports stating that Hundred Finance has fallen prey to a hacker attack. The company allegedly lost $7 million. This latest incidence of cybercrime highlights the need for tighter security measures in the financial industry.

Introduction

The integration of technology in the financial sector has elevated convenience and efficiency in transactions. However, it has also exposed the sector to security threats, as evident in recent financial attacks on companies such as CloudSEK and SatoshiPay. In this article, we shall dive into the hacker attack on Hundred Finance and evaluate its impact on the industry.

A Summary of the Hacker Attack

According to PeckShield, the hacker attack on Hundred Finance allegedly occurred on the 11th of March 2021. The attackers gained access to the system and siphoned off $7 million. The attack was possible due to a vulnerability in the transfer protocol used in Hundred Finance’s system. The breach was detected on the same day by their network monitoring software, but by then, the damage had already been done.

The Repercussions of the Attack

The hacker attack on Hundred Finance has triggered negative effects, more so on its image and clientele. One major repercussion is the loss of funds, which always takes a toll on the financial stability of a company. Hundred Finance’s clients may lose trust in the company’s security and may choose to shift their accounts elsewhere. A decrease in revenue flow is also another negative impact that typically follows such attacks.

Preventive Measures: A Way Forward

Preventing such attacks from happening is a critical priority for the financial industry. Companies need to implement more stringent security measures, including biometric authentications, firewall protections, and multi-factor password authentication. Regular audits and penetration testing are also essential, as they help to detect vulnerabilities in the system. Additionally, companies should invest in training their staff on security matters, as they are often the first line of defense against breaches.

Conclusion

The $7 million loss at Hundred Finance serves as a reminder that cybersecurity threats are increasing in the financial industry, and companies need to protect themselves against such attacks. Implementing preventive measures to secure the transfer and storage of data is vital for financial institutions. Clients also need to be vigilant and verify the authenticity of the companies they transact with. The industry must work towards strengthening security measures to avoid further losses.

FAQs

Q1. Who is Hundred Finance?

A1. Hundred Finance is a financial institution that operates in the fintech industry. The company is based in China and provides services such as asset management and consumer financing.

Q2. Are there any prior cases of cyber-attacks against the financial industry?

A2. Yes, cyberattacks against the financial industry are on the rise. Previous attacks have been spear-phishing, malware attacks, denial-of-service, and hacking.

Q3. How can companies protect themselves against attacks such as those on Hundred Finance?

A3. Companies can safeguard themselves by investing in cybersecurity measures like multi-factor password authentication, biometric authentications, firewall protections, and regular audits and penetration testing.

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