Coinbase the Nasdaq-listed cryptocurrency exchange has recently revealed that more than 6000 users lost their cryptocurrencies owing to a hacking campaign.
Due to the flaws of Coinbase’s SMS Account, the hackers took advantage and got to user accounts. This week over 6,000 customers’ accounts had been compromised and funds were removed.
Coinbase explained: “This type of campaign typically involves phishing attacks or other social engineering techniques to trick a victim into unknowingly disclosing login credentials to a bad actor.”
For customers who use SMS texts for two-factor authentication, 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.”
Also in the letter, Coinbase updated its SMS Account Recovery protocols adding: The fund’s deposit to the value of the currency was improperly removed from your account at the time of the incident. He also assured customers affected that they will receive full value for what they lost.”
However, in the Nasdaq-listed crypto exchange, he said having an internal investigation the company is working closely with law enforcement to find the individuals behind this hack.
Coinbase insisted, “We have not found any evidence that these third parties obtained information from Coinbase itself.”
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