5 Steps To Protect Your Crypto Funds After the Coinbase Hack
Written by
T. Woods
Edited by
Rebekah Evans
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Recently, the American cryptocurrency exchange Coinbase found itself under attack by a squad of cyber criminals who, teaming with overseas Coinbase support agents, stole a small amount of customer information. While the information the criminals managed to gain access to was relatively small (Coinbase has described it as impacting less than 1% of their monthly transacting users), the info taken was used to trick those Coinbase users into giving up unspecified amounts of cryptocurrency. The criminals then attempted to extort $20 million from Coinbase to keep the breach silent, which Coinbase refused.
Utilizing cryptocurrency exchanges obviously comes with this sort of risk, as even the most seemingly secure online institutions can find themselves vulnerable to attacks (in this case, the cyber criminals actually bribed the overseas support agents to steal customer information). However, below are a number of steps that users and customers can take to protect themselves, according to Coinbase.
Also here is the next big cryptocurrency to watch this year.
Review Security Tips
A great starting point is to simply review the general Coinbase (or any other cryptocurrency exchange you use) tips on how to avoid social engineering scams.
‘Lock First, Ask Later’
Coinbase has suggested that if any online interaction feels unusual in any way whatsoever, lock your crypto account immediately and email its security team with a description of what has struck you as odd.
Activate Withdrawal ‘Allow-Listing’
This is a setting that only allows crypto transfers to digital wallets that you have authorized and control.
Set Two-Factor Authentication (2FA)
2FA is a security setting that requires two different and contrasting methods in order to access an account; for example: entering a password and receiving an authorization link via text or email in order to gain access to your account each time.
Immediately Disconnect From Potential Imposters
It’s extraordinarily improbable that agents for Coinbase or any other reputable exchange platform would contact you and ask for information such as your password or 2FA information, nor would they ask you to move your cryptocurrency to different digital wallets. If you were to encounter such a request, immediately discontinue the conversation and contact the exchange’s security team.
No digital system is perfect, but following these guidelines can protect you and your money.
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