Latest Cyber Attack Leaves Thousands Of Coinbase Customers Without Their Crypto Funds

2021-08-26 20:09:26

The latest cyber-attack on Coinbase leaves a great deal of US customers without their crypto funds. In particular, many Coinbase customers woke up to find their accounts empty, along with losing every crypto asset and funds they possessed. As a matter of fact, CNBC reports receiving thousands of complaints concerning a breach in the security of this popular exchange. This cyber-attack is part of the recent wave that sees hackers target blockchain operators in particular.

One of the reasons this case draws attention is due to the reputation that precedes Coinbase as a leading crypto-exchange. As a result, the margin for error is practically non-existent. However, what bugs most of the victims is the lack of communication from Coinbase regarding the matter. This is crucial, especially if you consider that Coinbase doesn’t employ a live chat since 2016.

Hence, the cyber-attack just serves as a reminder that timely communication literally saves lives. Something that potentially could have helped a certain anonymous couple who lost $168k in the latest Coinbase attacks.

These recent cyber attacks show that hackers are starting to turn the uniqueness of blockchain into their favor. For example, banks can easily divert, freeze or return money to accounts. Blockchain accounts are little bit trickier. Once you send the funds to a certain account, there is no getting back.

As a result, technologies such as 2FA (2 factor authentication) are mandatory to ensure the utmost safety. However, hackers are starting to use SIM swaps as a mean to breach this safety feature.

How this works is the hacker first must obtain a phone number. Then, via his mobile carrier he takes control of the SIM card, i.e. phone number. Afterwards he just intercepts any 2FA codes that the victim might receive while logging in.

Consequently, the majority of the Coinbase accounts end up for sale on the Dark Web. And according to Etay Maor of Cato Networks, these accounts usually go for around $150.

The best way to ensure that your cryptocurrencies are safe is to simply not store them in an online exchange. For that purpose, you can always use hardware wallets. They provide a completely different level of safety and convenience. Hence, news such as the US customers losing their funds at Coinbase should serve as a reminder to always stay on your toes when it comes to crypto.

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