Coinbase Customers Rise After Hackers Empty Their Crypto Wallets

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China is increasingly cracking down on bitcoin and cryptocurrency, fearing the proliferation of illicit investment and fundraising. Photo: AFP, MARCO BELLO

In a recent TechRadar article, it was revealed that Coinbase customers are very concerned about the actions of dishonest hackers to empty their crypto wallets. These hacked Coinbase accounts are then sold on the Dark Web for a price of between $ 100 and $ 150.

The incident is significant because Coinbase is one of the largest and best-recognized digital asset exchanges in the world, being listed on the Nasdaq.

According to CNBC, many customers remain as angry with Coinbase as they do with the attack, depending on the level of support they have received. Coinbases customer service communications are primarily via email. In response, many customers reportedly told CNBC that they were having difficulty reaching representatives of the company.

Sam Bakken of OneSpan reviews the incident for Digital Journal. According to Bakken, the incident shows why the cryptocurrency industry remains vulnerable, as well as a prime target given the relative value of tokenized money.

Bakken explains: Incidents like this demonstrate that cryptocurrency exchanges need to take a serious look at how they authenticate users on their platforms and follow up on fraud claims. The stakes at the table would be to respond to customer inquiries within a reasonable time frame, it would be best to proactively inform customers about the fraud, the best would be to detect and stop the fraud before it happens .

As for the main lessons to be learned from the latest incident, Bakken offers the following information: As crypto goes mainstream with more consumers investing through retail exchange platforms than ever before.

He adds that the vulnerability issues extend even further: SIM swap fraud has been widely used by bad actors to gain access to accounts. SMS alone as a form of authentication is understandably less secure than other methods – and crypto companies will have to follow suit. The use of SMS for multi-factor authentication often imposes customer data protection on mobile network operators, whose number porting processes have historically not been designed to withstand such attacks.

Despite the obvious hesitation from consumers, cryptocurrency exchange sites will continue to be popular. Bakken believes that these platforms can and should do more to protect their users. He recommends: biometrics.

In doing so, Bakken notes: This will allow these online platforms to have a more robust interface for a seamless and user-friendly experience, while being able to quickly and remotely verify whether a user is who they claim to be or not.

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