Bitcoin, Ethereum, Dogecoin: What do you know before investing in crypto?
From Dogecoin to Bitcoin to Coinbase, cryptocurrencies are the hottest trend in investing today. Here’s what you need to know before purchasing:
USA TODAY
A data breaches affecting Coinbase, the world’s largest cryptocurrency exchange, have made data vulnerable for some customers.
The U.S. Department of Justice reportedly has launched an investigation into the attack. According to the company, cybercriminals fed a group of “fraud” overseas support agents to promote violations.
The company said on May 11 it received emails from an unknown actor who claimed to have access to several internal documents and information about certain customer accounts. Coinbase refuses to pay the $20 million ransom demand and instead offers a $20 million reward for information about hackers.
“We are working with DOJ and other US and international law enforcement agencies to inform and cooperate that law enforcement agencies are pursuing criminal charges against these bad actors,” Coinbase Chief Justice Officer Paul Grawal told Reuters.
Coinbase said the hackers have no access to login credentials or passwords, but have stole other customer data. The company said it would set up additional safeguards and refund customers who were deceived to send money to attackers. Additionally, new support hubs are being opened in the US
The company’s stock price plummeted when Coinbase predicted a $180 million to $400 million hit after the attack.
If you are one of millions of American Coinbase customers, here are some things you need to know about violations and how to protect yourself.
What did the Coinbase hacker get?
According to Crypto Exchange, the attacker accessed the following information from a subset of the compromised customers:
- Name, address, phone, email
- The last four digits of the Social Security number
- Masked bank account numbers and some bank account identifiers
- Government-ID Image
- Account data such as balanced snapshots and transaction history
Coinbase said attackers cannot access:
- Log in with your credentials or two-cause verification code
- Private Key
- Ability to move or access customer funds
- Coinbase Prime Account
- Coinbase or Coinbase Customer Hot or Cold Wallet
How can Coinbase customers protect themselves after a violation?
The company sent an email notifying affected customers on May 15, saying it would refund those who accidentally sent funds to scammers as a direct result of a violation the day after reviewing the case.
Coinbase customers should be on high alert against scammers who are trying to get more information and money after a violation.
“Expect scammers. They are related to whether or not they are related to this case, but they will poss as Coinbase employees and try to put pressure on your funding movement,” Coinbase said in a statement. “We will never call or text you to provide you with a new seed phrase or wallet address to move your funds. Once you receive this call, hang up.”
Additionally, the company recommends allowing only transfers to wallets that it believes to have full control. It also suggests enabling strong two-factor authentication. If something feels bad, Coinbase locks your account and emails Security@coinbase.com.
Other crypto exchanges are at risk
This violation did not affect other crypto exchanges, but was subject to cyber attacks, and cryptocurrency customers are generally the common target of fraudsters.
Funds stolen by the Crypto platform hacking increased 21% in 2024 to a total of $2.2 billion.
Other crypto exchange platforms, including the Robinhood and the Cash app, have become victims of cyberattacks that have previously published data from millions of users.
The industry has become more mainstream for many years, but Coinbase has acknowledged that widespread adoption of cryptocurrencies depends on trust.
contribution: Reuters
Reach Rachel Barber at rbarber@usatoday.com Follow her at x @rachelbarber_
