Coinbase, the third-largest cryptocurrency exchange globally, faced a $20 million extortion scheme when cybercriminals collaborated with overseas support agents to leak user data. In a blog post on May 15, Coinbase revealed that external actors bribed customer support contractors to access internal systems and steal limited user account information. Less than 1% of monthly transacting users were affected, with no passwords, private keys, or funds compromised. The attackers demanded $20 million in Bitcoin from Coinbase, which was refused. Instead, Coinbase offered a reward for information leading to the culprits' arrest. The exchange also disclosed plans to reimburse users who fell victim to phishing scams, with estimated expenses ranging from $180 million to $400 million. To prevent future incidents, Coinbase will enhance internal data management processes and relocate some customer support operations. Social engineering scams remain a significant concern for users, with estimated losses of $45 million in phishing schemes leading up to May 7. Read more AI-generated news on: https://app.chaingpt.org/news

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