Even though phishing attempts targeted people, Coinbase acknowledged a vulnerability in their two-factor authentication mechanism.
According to a recently released breach notification letter, at least 6,000 Coinbase users were victims of theft this spring.
The attackers most likely used phishing attacks.
According to Coinbase’s statement, attackers obtained illegal access to 6,000 accounts between March and May 2021.
By acquiring email addresses, passwords, and phone numbers and getting access to email inboxes, the attackers were able to do so.
This was most likely done through phishing attempts against the victims rather than a breach of Coinbase’s user records, according to Coinbase.
“We have not found any evidence that these third parties obtained this information from Coinbase itself,” the exchange said.
Coinbase did, however, acknowledge a flaw in [its] SMS Account Recovery procedure that allowed the attackers to bypass two-factor authentication (2FA) and get access to user accounts.
Attackers were able to move bitcoin funds to their wallet addresses after gaining access to user accounts.
Users of Coinbase have been compensated.
Coinbase stated that it would refund consumers and that “some clients [had] already been paid” when the letter was issued. A dedicated phone support line was also established.
A Coinbase spokesman told Reuters that the problem had been fixed to a great extent. They stated that the issue was promptly addressed and that they worked with these clients to reclaim control of their accounts and repay them for the cash they lost.
Coinbase failed to give help when hackers stole customer cash, according to CNBC and other news sources in August. It’s unknown if the two occurrences are connected.
The exchange has not stated the number of funds that may have been taken, whether in fiat currency or Bitcoin.