Coinbase exchange is embroiled in a dispute with a hacking victim over a security breach that resulted in customer losses.
The incident occurred in May 2022, and Jared Ferguson, a resident of New York, lost $96,000 as a result. He subsequently sued Coinbase, claiming that the company’s security measures failed to flag “obviously fraudulent and unauthorized transactions.”
Ferguson received an SMS message from his mobile carrier about a SIM card change request that he didn’t make, which was followed by the depletion of his Coinbase account containing almost all of his life savings within eight hours.
He believes that Coinbase is responsible for unauthorized withdrawals under state and federal laws. However, Coinbase has denied any wrongdoing and has refused to take responsibility for the incident or refund the affected account holder.
This is not the first time Coinbase has faced such allegations. In 2021, another victim lost $7,200 from a Coinbase account in a SIM swap attack, and the company refused to reimburse the losses.
The incident highlights the importance of cybersecurity measures and the need for vigilance when it comes to protecting personal information and assets.
As the popularity of cryptocurrencies grows, so too do the risks associated with them. It is incumbent upon exchanges such as Coinbase to provide robust security measures to protect their customers’ assets and take responsibility when those measures fail.
Coinbase’s lack of customer support has been criticized in the past, and this incident has only added to its woes.
It is essential to remember that personal responsibility is also a crucial aspect of cybersecurity. Coinbase reminded Ferguson in an email that “you are solely responsible for the security of your e-mail, your passwords, your 2FA codes, and your devices.” Therefore, it is crucial to use unique, strong passwords and enable two-factor authentication on all accounts. It is also essential to monitor your accounts regularly and report any suspicious activity immediately.