Coinbase has revealed an attack in which a group of hackers bribed support agents to access user data.
Coinbase is facing a serious security crisis after a data breach which took place last December. A hacker group claimed to have stolen sensitive customer information and demanded a $20 million ransom in bitcoin, threatening to release the data if the payment is not made.
In response, Coinbase CEO Brian Armstrong stated the company will not negotiate with criminals. Instead, the firm launched a countermeasure: a $20 million bounty for anyone who provides information leading to the identification and capture of the attackers.
In a post, the company added it will “reimburse customers who were tricked into sending funds to the attacker.”
Reports indicate the hackers managed to corrupt some Coinbase customer service agents, gaining access to the company’s internal systems. Once inside, they collected sensitive user data, including names, phone numbers, email addresses, and partial social security numbers. Masked bank details, ID document images, and snapshots of account balances were also compromised.
Coinbase confirmed the breach and said it acted swiftly to isolate affected systems and notify impacted users. Previous reports said the incident affected 1% of monthly transacting users.
