Coinbase sent fake account security notifications to 125,000 customers

Coinbase sent fake account security notifications to 125,000 customers

Coinbase, one of the largest cryptocurrency exchanges, admitted to mistakenly telling around 125,000 customers that their security settings had changed.

The company, which is listed on the Nasdaq, told CNBC on Monday that this was the result of an internal error.

Company spokesman Andrew Schmidt told CNBC that Coinbase “spent most of the weekend working with customers to make sure we can answer their questions.” “We believe the only way to build trust with our customers is to be transparent when we’re wrong. ”

The incident comes following a CNBC story a week ago that detailed widespread complaints from Coinbase customers whose accounts were hacked and then were unable to contact anyone at the company for further assistance. aid. Coinbase said it was improving customer service this month by introducing voice support for customers whose accounts have been taken over by a third party, and live chat later this year.

The company sent customers a security email at 1:45 p.m. Friday. It said, “Your two-step verification setting has been changed. This caused confusion and anxiety among investors, who believed their accounts had been hacked.

Coinbase then sent a second email stating that the notification was “sent in error”. The company said in a tweet that it “had encountered a notification delivery issue that sent text messages and email notifications alerting customers that their 2FA account settings had been changed.”

The tweet said, “Our team immediately started working to identify the problem and put an end to this misinformation. We were able to stop this misinformation at 3:07 PM PST. However, we think this confused some people.

“We will continue to work to earn the trust of all customers who have been affected by the information,” the company said.

A spokesperson for the Schmidt company said the problem was the result of an internal error, not a hack. “All of a sudden the system started sending stuff like a bug to the system, but it wasn’t malicious or a third party error.”

Retired police officer Don Pertle, 53, told CNBC he was concerned when he received an email from the company on Friday saying his two-factor authentication had been changed. He said he was concerned that a hacker would try to take over his Coinbase account.

“I was scared to death. I contacted my daughter and her boyfriend. I asked them, “Should I sell my crypto? “, Said Pertle. “I was like, ‘I have to sell this before I lose any money.’ “

That day, he said he sold $ 60,298 in crypto – an investment he was making for his grandson. He is now wondering if this is a safe investment.

According to the company, Coinbase, which went public in April, has more than 68 million users, more than 2,100 full-time employees and $ 223 million in assets.

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