$400 million Coinbase scam: What role did THIS Indian call centre play in the company's biggest-ever fraud?
American cryptocurrency exchange Coinbase disclosed a major data breach on May 15 that cost the company up to $400 million, affected more than 69,000 customers. Known to be its biggest security failure to date, this incident occurred after hackers bribed customer service workers in India to leak sensitive data, according to a report by Fortune.
The report revealed that a loose network of young English-speaking hackers was partially responsible for the scam. Additionally, business process outsourcing units (BPOs) also played a role as a weak link in its security operations.
The employees of a US-based customer support company, TaskUs, handling support for Coinbase since 2017, were targeted by hackers. With a significant presence in India, TaskUs laid off 226 Indian staff in Indore, weeks after the security breach was reported.
The company paid salaries in the range of $500-$700 per month.
Because of low salaries, some employees in India were convinced to transfer confidential customer records for bribes. Coinbase stated it had severed relationships with those individuals and other foreign agents implicated.
'Obviously that's the weakest point in the chain, because there is an economic reason for them to accept the bribe,' Sergio Garcia, founder of the crypto investigations company Tracelon, told Fortune.
Hackers used to impersonate Coinbase staff, convincing customers to give up their crypto assets, as stolen information was not enough to get the crypto vaults of the company. This led to huge financial losses. The crypto company has not revealed the exact number of users who have lost money. However, it plans to reimburse the affected customers.
A class action lawsuit has been lodged on behalf of Coinbase customers in New York against TaskUs, alleging negligence. The company maintains that all the accusations lack merit, and they are improving security protocols. TaskUs claimed that two agents were involved in a wider plot targeting several service providers associated with Coinbase.
'The Comm' or 'Community," a loosely connected group of young English-speaking cybercriminals who use Telegram and Discord to communicate, are expected to be responsible for the security breach. The group is 'often motivated by attention seeking or the thrill of mischief,' the report states. They also compete with one another to see who can steal more.
'They come from video games, and then they bring their high scores into the real world,' Josh Cooper-Duckett, director of investigations at Cryptoforensic Investigators, told Fortune. 'And their high score in this world is how much money they steal," he added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Today
33 minutes ago
- India Today
US demands final trade offers by Wednesday as tariff deadline nears
With just five weeks until a self-imposed deadline and global markets watching closely, the Trump administration is accelerating trade negotiations with multiple countries, urging them to submit their "best offers" by to a draft letter seen by Reuters, the United States Trade Representative (USTR) is pressing countries to outline top-line proposals in key areas such as tariff cuts, quota allocations for US industrial and agricultural goods, and removal of non-tariff trade move comes as the administration attempts to wrap up complex negotiations that began on April 9, when President Donald Trump paused his sweeping "Liberation Day" tariffs for 90 days after a market backlash. That temporary pause ends on July 8. The letter outlines an aggressive timeline, reflecting a growing sense of urgency inside the White House. "Productive negotiations with many key trading partners continue at a rapid pace. It is in all parties' interest to take stock of progress and assess any next steps," a USTR official told administration officials, including White House economic adviser Kevin Hassett, have repeatedly signalled that multiple agreements are "nearing completion," only one limited deal has emerged so far — with Britain. That agreement, however, is widely viewed as a loose framework for ongoing talks, rather than a final draft letter reportedly calls for detailed responses on digital trade, economic security, and country-specific commitments. Once proposals are submitted, the US plans to evaluate them "within days" and provide what the letter refers to as "a possible landing zone," potentially including reciprocal tariff the draft doesn't specify recipient nations, it's understood to target countries currently in active negotiations, including the European Union, Japan, Vietnam, and ambitious -- and often frenetic -- tariff policy represents a major part of his "America First" economic agenda as he seeks to reshape US trade relationships, reduce trade deficits and protect American industries. Republican lawmakers are also banking on tariffs to add to federal revenue and offset the cost of the tax-cut legislation now working its way through twists and turns in Trump's tariff policies have taken investors on a rollercoaster ride. In May, US stocks held their biggest rally of any month since November 2023, but that was after global indexes had cratered under the barrage of Trump's tariff announcements throughout February, March and early inputs from ReutersTune InMust Watch
India Today
33 minutes ago
- India Today
Non-Starter: Iran set to reject US nuclear deal over enrichment, sanctions
Iran is expected to reject a fresh US nuclear proposal delivered over the weekend, calling the offer one-sided and lacking any concessions on key issues such as uranium enrichment and sanctions relief, a senior Iranian diplomat told Reuters on Monday."Iran is drafting a negative response to the US proposal, which could be interpreted as a rejection of the US offer," said the diplomat, who is closely aligned with Iran's nuclear negotiating team. "This proposal is a non-starter that fails to address Tehran's interests."advertisementThe latest US offer was relayed to Tehran on Saturday by Omani Foreign Minister Sayyid Badr Albusaidi, who has been shuttling between the two sides in an effort to mediate a breakthrough. Despite five rounds of indirect discussions between Iranian Foreign Minister Abbas Araqchi and President Donald Trump's Middle East envoy Steve Witkoff, key sticking points remain unresolved. One of the main obstacles is Washington's continued demand that Iran fully halt uranium enrichment and ship out its stockpile of highly enriched uranium. Tehran has consistently rebuffed these terms.'In this proposal, the US stance on enrichment on Iranian soil remains unchanged, and there is no clear explanation regarding the lifting of sanctions,' the diplomat said, adding that the Iranian side views the American position as 'completely one-sided.'Iran maintains that its nuclear program is purely for civilian purposes and denies seeking nuclear weapons. It has demanded the immediate removal of US sanctions that have throttled its oil-dependent economy. However, Washington has insisted that any sanctions relief must occur in phases, conditional on Tehran's Trump has made it clear that Iran can never obtain a nuclear bomb. Special Envoy Witkoff has sent a detailed and acceptable proposal to the Iranian regime, and it's in their best interest to accept it," White House spokeswoman Karoline Leavitt said in a statement. "Out of respect for the ongoing deal, the Administration will not comment on details of the proposal to the media."But Iranian officials say they are unconvinced. According to the diplomat, the proposal 'attempts to impose a bad deal on Iran through excessive demands.'The talks come amid renewed tensions since Trump's return to the White House in January. His administration has resumed the 'maximum pressure' campaign, blacklisting dozens of Iranian institutions and threatening military action should diplomacy withdrew from the original 2015 nuclear accord during his first term, reimposing sanctions that Tehran responded to by ramping up its uranium enrichment well beyond the deal's said Iran would issue a formal response to the US proposal soon, but the mood in Tehran suggests rejection is all but Iranian nuclear negotiations committee, overseen by Supreme Leader Ayatollah Ali Khamenei, has reportedly concluded that the current US offer "could not serve Tehran's interests."Must Watch
Time of India
an hour ago
- Time of India
Once in power, will set up judicial commission to probe false cases, police misuse: Punjab Congress chief Amarinder Singh Raja Warring
Ludhiana: Taking a stringent stand against the misuse of the police and their "willingness to oblige their political bosses and victimise innocent people by registering false cases, Punjab Pradesh Congress Committee president Amarinder Singh Raja Warring on Monday said once the Congress forms the govt in the state, it would set up a judicial commission to probe such cases. Addressing the 'Save Constitution' meeting in the Dakha assembly segment, on the city outskirts, Warring alleged that there was complete abuse of the Constitution in Punjab, with a section of police betraying their uniform. The meet was organised by Congress leader Capt Sandeep Singh Sandhu. Calling for tough and stringent measures to fix responsibility for false cases, Warring suggested that any official who was found to have registered a false case should not only be dismissed from the service but should also be made to spend the same period of time in jail as the innocent victim of the false FIR. Alleging that Punjab had turned into a police state, he referred to the killing of one person in police custody recently. He said there was no accountability and called for this practice to stop. The Ludhiana MP said Punjab needed serious police reforms to prevent the misuse of power. The Congress leader also took a dig at the Punjab govt's campaign against drugs – Yudh Nashya Virudh. Referring to the claims by the AAP govt that it registered 8,500 cases, he asked: "Do drugs finish with mere registration of FIRs or demolishing houses of people?" "Drugs are still being frequently peddled and people are still dying from drug overdose," he said, while referring to the complete failure of the govt in curbing drugs in the state. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo Warring also re-inducted the suspended Phillaur Congress MLA Vikramjit Singh Chaudhry into the party. The PPCC chief said Chaudhry was "dyed in wool third generation Congressman". He said the party would be strengthened with his return. Former deputy chief minister Sukhjinder Singh Randhawa and former MLAs Gurkirat Singh Kotli, Lakhwinder Lakha, Kudleep Singh Vaid, and Sukhpal Bhullar were also present.
