Coinbase Hacked: Criminals Bribe Employees to Steal Customer Data

By Netvora Tech News

In a shocking revelation, cryptocurrency exchange Coinbase has disclosed that criminals bribed its support employees to steal sensitive customer data. The stolen data was then used to extort the company, demanding $20 million in ransom. However, Coinbase refused to pay the ransom and instead offered a $20 million reward for information leading to the arrest and conviction of the perpetrators.

Criminal Scheme Unfolds

Coinbase revealed that the criminals bribed employees to access its support tool and copy customer data. While the exact number of affected users is not disclosed, the company stated that it is less than 1% of its monthly active users. The stolen data includes customers' names, addresses, phone numbers, email addresses, the last four digits of their social security numbers, masked bank account numbers, copies of passports, driver's licenses, and identification cards, as well as account details, transaction summaries, and business data.

The criminals used social engineering tactics to target Coinbase customers, convincing them to transfer funds to the criminal's accounts. The company has assured that it will compensate affected customers who fell victim to this scheme.

Betrayal of Trust

Coinbase has terminated the employment of the involved employees and is working with law enforcement agencies to trace stolen cryptocurrency. The company has not disclosed the exact amount of stolen funds, citing the ongoing investigation.

Protecting Customers and Partners

Coinbase is offering a $20 million reward for information leading to the arrest and conviction of the criminal perpetrators.
The company is compensating affected customers who lost funds as a result of the social engineering attack.
Coinbase is working with law enforcement agencies to trace stolen cryptocurrency and bring the perpetrators to justice.

Strengthening Security Measures

Coinbase has taken immediate action to strengthen its security measures to prevent similar incidents in the future. The company is committed to protecting its customers' data and ensuring a secure trading environment.

The incident serves as a stark reminder of the importance of robust security measures and the need for companies to prioritize their customers' data protection.