Hacked Coinbase User Blasts Help Desk’s ‘Impenetrable Screens’ (2024)

FAQs

How did my Coinbase get hacked? ›

"The third party took advantage of a flaw in Coinbase's SMS Account Recovery process in order to receive an SMS two-factor authentication token and gain access to your account," Coinbase said.

The breach, occurring on May 18 and discovered on May 24, allowed unauthorized purchases from the GM accessories website. The attackers likely used login credentials obtained from an unrelated data leak, exploiting users who reused compromised passwords.

Use Coinbase's security features

Moving your crypto assets off of any exchange into a self-custodial hardware wallet is widely recommended. However, if you choose to hold your assets on an exchange platform, Coinbase has excellent security measures in place to help combat the risks of hacking.

A lawsuit filed last week in San Francisco Superior Court says that hackers broke into vascular surgeon Ricardo Vasquez's Coinbase wallet and transferred $348,407 worth of various cryptocurrencies to accounts not related to him—fronting $40,000 of their own money to do so.

Pursuing Legal Action Against Coinbase

Therefore, if you were the victim of a Coinbase hacking incident, you might be able to take legal action. It is imperative to discuss your case with a cryptocurrency lawsuit attorney who can help you understand your rights.

Technical support and impersonation scams

Once you share your credentials with the attackers, they will use the information to access your Coinbase account, transferring crypto to their own wallets.

Coinbase Account Protection does not cover reimbursem*nt for any losses that were the result of an event or action that you were aware could result in compromise of your account security, if you failed to promptly notify Coinbase of such occurrence in accordance with Section 5.2 (Security Breach) of the Coinbase User ...

At Coinbase, we go to great lengths to keep all of your sensitive information safe. Account numbers and routing numbers are stored using bank-level AES-256 encryption on our servers. In addition, all traffic is encrypted in transit to prevent third parties from eavesdropping on your connection.

Keep your assets secure

Coinbase Wallet is a self-custody web3 wallet, putting you in full control of the private keys to your assets on the blockchain. Nobody, including Coinbase, can access your tokens or NFTs without your recovery phrase.

Is Coinbase in trouble? ›

Coinbase, the largest U.S.-based crypto trading platform, is facing obstacles in the form of hostile regulators (including the SEC, which sued the company), data breaches, disgruntled customers, and technical glitches. Plus, it's facing new competition from fund companies and brokerages.

Because it is US-based, publicly-traded, and is on the cutting edge of crypto security solutions, Coinbase consistently ranks as the safest crypto exchange in the world. That's why it's trusted by more than 100 million crypto investors.

To provide a more streamlined crypto investing experience for its professional clients, Coinbase Pro will shut down to make way for the company's new Advanced Trade platform.

Fraudsters are able to do this through a variety of means, including identity theft and socially engineering mobile carrier customer support representatives. This type of attack is a threat to all accounts using SMS-based 2-step verification and any account that can be recovered using phone-based authentication.

The SEC alleged that several major companies, including Coinbase and Kraken, operated as unregistered securities exchanges. Without the backing of the SIPC, investors may be out of luck if a crypto exchange collapses. If the exchange goes bankrupt, you may not be able to access your money.

Hackers can gain access to cryptocurrency owners' cryptocurrency wallets, exchange accounts, or the exchanges themselves. Ransomware and scams are also used to steal cryptocurrency.

Only certain assets are eligible for recovery. Start by attempting the recovery. If you receive an eligibility error message, we will not be able to recover. If your token isn't recoverable and believe this is an error, please contact support.

To report an unauthorized transaction:

Contact the Coinbase Support team by selecting Contact us at the bottom of the page. If you can't sign in to your account, take steps to regain access.