Potential monetary loss of up to $400M for Coinbase indicated in court documents regarding a hack.
In the ever-evolving landscape of cybersecurity, social engineering attacks have emerged as a significant threat, exploiting human vulnerabilities rather than purely technical ones. Recent data shows that these attacks, including the emerging ClickFix technique, have surged dramatically, accounting for nearly 8% of all blocked attacks in the first half of 2025 and making up nearly 40% of incidents related to initial access in cyberattacks.
The sophistication and scale of social engineering attacks are further enhanced by AI technologies. AI-driven phishing attacks have increased over 4,000% since 2022, with tools like deepfake videos, voice synthesis, and generative AI enabling cybercriminals to craft personalised phishing messages rapidly and convincingly.
New hires are particularly vulnerable to social engineering attacks. A recent survey found that 71% of new employees click on phishing emails within their first three months, and they are 44% more likely to fall for phishing than experienced staff. Organisations providing adaptive phishing simulations and behaviour-based training have seen a 30% reduction in phishing risk post-onboarding, highlighting the crucial role of training in defence.
Coinbase, a leading cryptocurrency exchange, has recently experienced a cyber incident, with social engineering attacks like ClickFix and AI-driven phishing potentially playing a role. To combat this, companies including Coinbase are likely focusing on multiple layers of defence: user education and training, technical safeguards such as multi-factor authentication and behaviour monitoring, simulated phishing campaigns, advanced threat detection using AI and machine learning, and heightened fraud-monitoring protections.
The incident at Coinbase affected up to 97,000 people based on the monthly transacting users (MTUs) metric. The leaked information included names, addresses, phone numbers and email addresses; masked Social Security numbers; masked bank account numbers; driver's license and passport photos; and balance and transaction histories. However, no passwords, private keys, or funds were accessed.
Coinbase has notified customers whose information was potentially accessed and has offered a $20 million reward for information leading to the arrest and conviction of the hackers. The company has also terminated all personnel involved and is moving some of its customer support operations, including opening a new support hub in the U.S.
The investigation by the Securities and Exchange Commission (SEC) into Coinbase is a hold-over from the prior administration about a metric Coinbase stopped reporting two and a half years ago. The alleged misstatement of verified users by Coinbase is a matter of dispute. Coinbase's Chief Legal Officer, Paul Grewal, stated that the company remains committed to working with the SEC to bring the investigation to a close.
Despite the challenges, Coinbase is moving forward, with plans to join the S&P 500 on May 19, making it the first crypto exchange to do so. The company's commitment to security and transparency, combined with its innovative approach to the cryptocurrency market, continues to set it apart in the industry.
- The evolving industry of fintech, particularly the cryptocurrency sector, faces mounting cybersecurity threats as AI-driven phishing attacks surge, with social engineering techniques like ClickFix becoming more prevalent.
- To strengthen its defense against such cyberattacks, companies like Coinbase are emphasizing multiple layers of protection, incorporating user education and training, advanced threat detection using AI and machine learning, technical safeguards, simulated phishing campaigns, and heightened fraud-monitoring protections.
