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Coinbase users are angry, hackers drain their wallets

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  • Coinbase hacked accounts are further sold on the Dark web for anything between $100 and $150
  • The cryptocurrency sector remains vulnerable as well as a prime target, given the relative value of tokenized money
  • cryptocurrency exchanges need to take serious measures at how they are authenticating users on their platforms 

Many users of the Coinbase exchange have found that their accounts are empty when the hackers managed to gain access to them and drained their cryptocurrency wallets. As per the interview done by one of the media publications, the customers of Coinbase across the U.S. were informed that their wallets are emptied once they logged into their accounts. 

There were thousands of customer complaints but no action has been taken so far. It is assumed that these Coinbase hacked accounts are further sold on the Dark web for anything between $100 and $150 respectively. Many customers are angry with Coinbase as they are with the attack, based on the level of support they have got. 

In the Digital Journal of Sam Bakken OpenSpan, he explained the incident highlighting why the cryptocurrency sector remains vulnerable as well as a prime target, given the relative value of tokenized money. 

Bakken opinion on increasing frauds and its solutions

He explained that such incidents tell that cryptocurrency exchanges need to take serious measures at how they are authenticating users on their platforms and following up on fraud claims. The support team should respond to the customer query within a reasonable amount of time. It would be much better to proactively notify customers of fraud. It would be best to detect the fraud and stopping it before it occurs. 

There are certain points to be remembered says, Bakken. He says that the people in cryptocurrency will need to look at the lessons learned by more traditional financial institutions (FIS) and banks when it comes to security. Vulnerability is another cause of concern that spreads like a wildfire. 

SIM, SMS frauds

SIM Swap fraud has been used widely by hackers to gain access to accounts. SMS in itself is not fully secure though it is used for authentication purposes- crypto firms will need to follow suit. Using SMS for multi-factor authentication often puts the onus of protecting customer data on mobile network operators, wherein the number portability process is not designed to protect from such attacks. 

Despite the increasing hesitancy of consumers, the cryptocurrency exchange business continues to grow. Bakken believes that these platforms should do more to protect the customers he suggests that cryptocurrency platforms should be looking forward to adopting mobile push notifications and biding mobile devices and apps to accounts as an alternative. This will have the more benefits of being protected by application shielding technology and the latest identity verification technology like Machine Learning and biometrics. 

Steve Anderrson
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