Hackers Steal Cryptos from around 6,000 Coinbase Customers

Coinbase, a US-listed cryptocurrency Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, suffered a hacking attack that affected around 6,000 customers who got their cryptos stolen after the threat actors spotted a vulnerability. According to BleepingComputer, citing a notification sent by the firm to its users over the week, the incident took place between March and May 20, 2021.

The vulnerability helped the hackers to bypass Coinbase’s SMS multi-factor authentication feature. In fact, attackers just needed the customers’ email addresses, passwords, and phone numbers to steal their Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. “While it is unknown how the threat actors gained access to this information, Coinbase believes it was through phishing campaigns targeting Coinbase customers to steal account credentials, which have become common. Additionally, banking trojans traditionally used to steal online bank accounts are also known to steal Coinbase accounts,” BleepingComputer commented.

The flaw allowed hackers to transfer funds to third-party wallets not associated with Coinbase. “We immediately fixed the flaw and have worked with these customers to regain control of their accounts and reimburse them for the funds they lost,” a Coinbase spokesperson told Reuters. However, the US-listed company does not believe that information was extracted from the firm itself as of press time.

Victims Compensation

To compensate victims, Coinbase issued the following statement: “We will be depositing funds into your account equal to the value of the currency improperly removed from your account at the time of the incident. Some customers have already been reimbursed – we will ensure all customers affected receive the full value of what you lost. You should see this reflected in your account no later than today.”

Still, it is unclear if Coinbase will reimburse hacked customers with the stolen crypto or fiat currency, BleepingComputer noted. Recently, the US-listed cryptocurrency exchange announced that it would add phone support and deploy a series of measures to strengthen its customer support area at the end of the year.