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Introduction:
A firestorm of controversy has ignited around a newly reported data breach that allegedly exposed over 89 million Steam users’ private records, including one-time authentication codes delivered via SMS. The source of the leak is being hotly debated, with cloud communications provider Twilio at the center of the controversy. While a notorious hacker advertised the data for sale, Twilio has firmly denied any breach on their end. This article digs into the claims, the evidence, and the broader implications for the cybersecurity of digital platforms like Steam.
Alleged Steam Data Breach:
A cybercriminal operating under the alias Machine1337 (also known as EnergyWeaponsUser) has claimed possession of an enormous cache of Steam user data — over 89 million records, which allegedly include SMS one-time passcodes and phone numbers. This threat actor is selling the data for \$5,000, presenting it as a breach of the globally popular gaming platform, Steam, owned by Valve Corporation.
Initial analysis by BleepingComputer, who examined a sample of 3,000 leaked records, confirms that the data contains real historical SMS messages used for Steam two-factor authentication (2FA). The SMS logs show delivery confirmations and include user phone numbers, strongly indicating the data is authentic.
Security researcher and games journalist MellowOnline1, who runs the SteamSentinels community, suspects this isn’t a direct Steam or Valve breach, but rather a supply-chain attack involving Twilio, a cloud communications platform used by many digital services — including Steam — for delivering SMS and voice-based authentication.
Leaked logs point to Twilio’s backend, suggesting a possible compromise via abused API keys or unauthorized access to an admin account. However, Twilio has pushed back hard, stating after their internal review that there is “no evidence of a breach.”
Their spokesperson emphasized that
Interestingly, the timestamps on the leaked messages are recent, many from early March, raising further concerns about the freshness and potential real-world impact of the leak.
Another theory gaining traction is that the breach might stem from a third-party SMS relay provider — one that sits between Twilio and the recipient, potentially leaking data during transmission.
In light of the controversy, security experts advise Steam users to activate the Steam Guard Mobile Authenticator and monitor login history for suspicious activities.
What Undercode Say:
This incident raises significant red flags about how multi-tiered supply chains in digital communication systems can become weak links in user security. Even without a direct breach of Twilio or Valve, the presence of legitimate SMS messages in the sample set suggests an intermediary vulnerability.
The fact that messages include valid Steam authentication codes implies the attacker had access to live SMS traffic, possibly through an under-secured partner provider or exposed API credentials. In today’s security environment, API abuse is a rising threat vector, particularly with services like Twilio that enable massive data transmission through programmable infrastructure.
The hacker’s claim of 89 million records is staggering and, if accurate, could represent one of the largest leaks in gaming history. The low asking price of \$5,000 might indicate either a hoax or a rushed sale, often seen when attackers fear rapid detection or are trying to offload compromised data before patches close the gap.
Twilio’s reaction is typical of large tech companies, emphasizing due diligence and denying culpability without full transparency — a position they must maintain legally, but one that can erode trust if not followed by verifiable proof.
For Valve, the radio silence is deafening. With over 120 million monthly active users, many depending on Steam’s 2FA system, the platform has an obligation to speak up. Their silence fuels speculation and undermines confidence in the system’s integrity.
Furthermore, this event demonstrates a critical security takeaway: 2FA is only as secure as the system delivering it. If SMS messages are compromised through third-party vendors, then even 2FA becomes vulnerable. That’s why many experts now advocate for hardware tokens or app-based authenticators instead of SMS.
As attackers grow more sophisticated and supply chains more complex, organizations must scrutinize their vendor relationships, ensure API key rotation policies, enforce least-privilege access, and continuously monitor backend traffic for anomalies.
This case also sets an important precedent in how digital service providers should respond to emerging threat reports. Immediate transparency, collaboration with independent researchers, and real-time updates are now expected, especially when millions of user records may be at risk.
Until Valve and Twilio fully clarify the origin of the leak, this incident serves as a wake-up call for the entire tech ecosystem. The real battle isn’t just about protecting one company’s servers — it’s about guarding the invisible mesh of integrations that power the digital world.
Fact Checker Results:
✅ Twilio has denied any breach after investigating the leaked SMS data
✅ No evidence yet confirms a direct compromise of Valve or Steam servers
✅ Data may originate from an intermediary SMS service, not Twilio directly 📲
Prediction:
If this breach proves to be the result of a third-party compromise in the communication chain, we can expect major tech players like Valve and Twilio to reevaluate their vendor risk assessments and shift away from SMS-based authentication. Future breaches of this nature may force platforms to adopt zero-trust architecture, stronger encryption, and token-based verification as the new security standard. Expect a new wave of regulations or guidelines around API usage and 2FA delivery methods in the coming months.
References:
Reported By: www.bleepingcomputer.com
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