Coinbase has confirmed a significant security breach that may cost the company $400 million. Hackers targeted the platform’s offshore customer support agents using social engineering tactics.
According to Bloomberg, attackers approached these employees through Telegram and offered bribes for sensitive internal access. While no user funds, passwords, or private keys were stolen, unauthorized access was gained to specific user data and account records. Coinbase did not pay the hackers’ ransom demand and instead rewarded anyone who could identify them with the same amount of money.
The incident joins a series of threats, especially because Bybit announced a hack worth $1.4 billion in the past. Coinbase has to cope with costs and legal issues, unlike Binance and Kraken, which use their safety measures.
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Binance and Kraken Stop Attack Before Any Data Was Lost
Hackers attempted the same phishing method on Binance and Kraken by targeting customer service teams. Messages sent through Telegram asked for sensitive data such as account details and user addresses. However, both platforms were able to detect scams early using automated monitoring tools.
Internal AI systems flagged the suspicious communication before employees could respond to requests. Consequently, my company suffered no data breaches, and everything operated smoothly. Both exchanges have taken additional steps to reduce the risk of being threatened in the future.
These exchanges are now being recognized for their swift response and effective internal defense systems. This ensured neither data loss nor financial damage.
Human Error Remains a Key Threat Vector in Crypto Security
This latest incident highlights the growing trend of hackers exploiting human behavior over technical vulnerabilities. Social engineering attacks are designed to manipulate staff directly, making offshore customer support agents a common entry point.
Companies in the cryptocurrency sector are now being urged to provide better training to outside teams. With new threats, companies must defend their systems and inspire employees to remain wary of false activities.
Coinbase’s attack underlines why human issues play the most crucial role in cryptocurrency cybersecurity. Although Binance and Kraken acted fast to prevent such scams, Coinbase is currently paying the price for what happened. As attacks from phishing schemes become more advanced, crypto businesses should improve their initial security measures to avoid future problems.
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