How Background checks could have prevented the Coinbase Data Breach
“Coinbase, the world’s third-largest cryptocurrency exchange, was hit by a $20 million extortion attempt after cybercriminals recruited "multiple contractors or employees working in support roles outside the United States to collect information from internal Coinbase systems to which they had access", and to leak user data, the company said according to CoinTelegraph.”
Insiders and Third party companies :
The recent Coinbase breach highlights the growing threat of insider threats and social engineering in the digital age. In this case, cybercriminals bribed customer support contractors to leak sensitive user data, demonstrating how attackers can exploit internal access to cause significant damage.
This incident underscores the critical need for robust human risk management and background checks within companies, especially in sensitive sectors like cryptocurrency. By screening employees, contractors, and third-party vendors thoroughly, organizations can significantly reduce the risk of internal actors being manipulated or compromised.
Human Risks and Background checks :
In addition to ensuring that individuals with access to sensitive data undergo comprehensive checks, implementing ongoing monitoring and access controls is essential. If Coinbase had a stronger background check process and tighter monitoring systems in place, this breach may have been prevented before it escalated to extortion.
Conclusion :
It’s a reminder that cybersecurity isn’t just about technology—it’s about understanding and mitigating the risks posed by the people who interact with your systems. Proactive human risk management can help organizations protect themselves from both external and internal threats.
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