Hackers exploit MFA flaw to steal from 6000 Coinbase customers. Malicious actors are presumably have accessed customer cash by abusing Coinbase’s SMS account recovery procedure.
After bypassing the company’s multi-factor authentication, or MFA, feature in a concerted effort earlier this year, cryptocurrency exchange Coinbase has apparently suffered another security compromise.
According to a report from Bleeping Computer, the attackers stole cryptos from 6,000 accounts, however, the firm did not reveal the monetary amount of the heist. Coinbase allegedly alerted impacted customers earlier this week that the fraud occurred between March and May of this year.
A flaw in Coinbase’s SMS Account Recovery procedure
The attackers needed to know the email address, password, and phone number of the affected individuals to get access to their accounts. Although phishing schemes targeting exchange customers are relatively uncommon, it’s unclear how the attackers got this information. Coinbase, on the other hand, discovered a flaw in the account recovery procedure, which the attackers used to obtain access to the accounts.
“In this instance, a third party exploited a weakness in Coinbase’s SMS Account Recovery procedure. In order to get an SMS two-factor authentication token and gain access to your account for customers. Who utilise SMS texts for two-factor authentication.”
Poor customer support
Coinbase, one of the world’s major cryptocurrency exchanges, has experienced ferocious quibble for its terrible customer support. Customers whose accounts were allegedly hacked and cash stolen were apparently unable to contact support personnel. Resulting in thousands of complaints against the firm, according to reports.
Coinbase’s initial public offering (IPO) in April raised $86 billion. But the business has struggled to grow its customer care department. Customers with susceptible hacked accounts may now call a new helpline, which the company introduced in August.