Coinbase is providing a $20 million bounty for individuals who successfully identify and expose the responsible party behind the data breach.
Coinbase Takes Aggressive Action After Data Breach Expose
In a bold move, cryptocurrency exchange platform Coinbase, has declared war on data thieves following a breach that exposed sensitive customer information. The hack, which is now the focus of a $20 million bounty program, saw less than 1% of Coinbase's monthly active users put at risk.
The breach was facilitated by cybercriminals who bribed internal support staff to gain access to customer data. In a statement, Coinbase revealed that the stolen information included names, contact details, masked social security numbers, and bank account data. Yet, no passwords, private keys, or funds were compromised, and accounts associated with Coinbase Prime remained untouched.
Upon discovery, the hackers demanded a $20 million ransom, which Coinbase categorically refused. In response, the company pledged to pay the same sum as a bounty to anyone providing information that leads to the perpetrators' arrest and conviction. Notably, the breach is thought to have taken place overseas, with the allegedly corrupt support agents fired and handed over to law enforcement.
Coinbase also vowed to refund affected retail customers who were scammed, and has notified users of the incident. In addition to financial retribution, the exchange has embarked on a series of security and customer support initiatives.
The new measures underscored by Coinbase include:
- Opening a U.S.-based support center
- Strengthening internal threat detection systems
- Implementing mandatory fraud warnings and identity checks
- Boosting collaboration among security teams
In a video message, CEO Brian Armstrong, issued his own threat: "To any extortionists or those looking to harm Coinbase customers, I say: We will not give in to your threats and we will pursue justice. And that's my response."
So, if you're a cybercriminal with designs on Coinbase, be warned - you're taking on an adversary determined to protect its users and pay heavy consequences for those who betray their trust.
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Behind the Scenes:The breach was facilitated by cybercriminals bribing rogue overseas support agents, enabling access to sensitive customer data. This small-scale breach impacted approximately 1% of Coinbase's customer base. There were attempts for extortion but Coinbase firmly rejected the demands. In response, the exchange has implemented enhanced security measures, opened a U.S. based support center, and announced a $20 million bounty program to identify the culprits. To safeguard your account, it is advisable to enable two-factor authentication and withdrawal allow-listing, while exercising caution when dealing with suspected scammers pretending to be Coinbase employees.
In light of the data breach, Coinbase has announced a series of aggressive security measures to protect their customers, including the opening of a U.S-based support center, strengthening internal threat detection systems, implementing mandatory fraud warnings and identity checks, and boosting collaboration among security teams. Moreover, the exchange has also launched a $20 million bounty program to help identify the perpetrators of the breach.
