Coinbase is working to fix a misleading 2FA account activity message that has caused confusion and concern, leading users to believe their credentials have been compromised.
See also: Coinbase was the target of GitHub Actions breaches
In recent weeks, many users have expressed concerns about the possibility of a serious security issue at Coinbase.
After receiving phishing emails or messages from Coinbase, they logged into their accounts and checked the activity log, discovering multiple entries that reported “second_factor_failure” or “2-step verification failed” with login attempts from unusual locations.
Two-factor authentication is typically triggered after a Coinbase user successfully logs in with their credentials, leading them to believe their passwords had been compromised and that only 2FA protected them from having compromised . This prompted them to change their passwords, check for malware, and worry about a possible breach.
See also: Indian man stole $37 million worth of crypto via fake Coinbase site
The situation worsened as these users claimed to have a complex and unique password for Coinbase and there was no evidence of malware on their devices, leading them to believe that Coinbase had been hacked.
However, it turned out that Coinbase’s “ second_factor_failure ” or “ 2-step verification failed ” account activity messages appear in two different scenarios—when a user enters an incorrect 2FA code or when someone tries to log in to their account with an incorrect password. Similar concerns were expressed on Reddit , where users who received these notifications confirmed that incorrect passwords were the cause.
Coinbase has advised that it is considering changing the error message when an incorrect password is entered, but no timeline has been set for when this will happen.
As a reminder, Coinbase will never text or call you about suspicious activity on your account, so if you receive a call or message, ignore it and do not interact with the scammers.
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Coinbase is a popular cryptocurrency exchange platform that allows users to buy, sell, store, and manage cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and more. Founded in 2012 by Brian Armstrong and Fred Ehrsam , it is one of the most well-known and widely used platforms for trading cryptocurrencies , especially in the United States. Coinbase provides an easy-to-use platform for beginners, as well as advanced features for more experienced users.
Source: bleepingcomputer
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