Cryptocurrency platform Coinbase has disclosed account takeover rates to incentivize users to enhance their security measures. According to recent statistics, 95% of Coinbase customers use SMS-based two-factor authentication (2FA), the least secure 2FA method available. These users accounted for 95.65% of all account takeovers as of November 2022.
Why SMS-Based 2FA Is Vulnerable
Coinbase mandates two-factor authentication for all accounts, requiring a password and a one-time passcode (OTP) for login. However, SMS-based 2FA poses significant risks:
- SIM-Swapping Attacks: Hackers exploit cellular providers to clone a victim’s phone number onto a new SIM card, intercepting OTPs. Learn more about SIM-swapping here.
- Phishing & Malware: Attackers use phishing emails or malware to steal credentials and bypass 2FA.
👉 Upgrade your security with stronger 2FA methods
Stronger Alternatives to SMS-Based 2FA
Users who adopted more secure 2FA methods experienced far fewer account takeovers:
| 2FA Method | Account Takeover Rate |
|---|---|
| Authenticator Apps | 4.13% |
| Security Keys | 0.04% |
Recommended Secure 2FA Options:
Authenticator Apps (e.g., Google Authenticator, Authy)
- Generates OTPs locally, eliminating carrier vulnerabilities.
Hardware Security Keys (e.g., YubiKey)
- Physical devices that prevent remote hacking.
Coinbase App Push Notifications
- Direct alerts to approve login attempts.
High-Risk Users and Asset Protection
Despite 95% of users relying on SMS-based 2FA, high-balance accounts typically adopt stronger security:
- 5% of users (those using push/TOTP/security keys) hold 57% of Coinbase’s total custodial assets.
How to Upgrade Your Coinbase 2FA
- Navigate to Account Settings > Security.
- Select a more secure 2FA method (e.g., authenticator app or security key).
- Follow the setup prompts to migrate away from SMS-based 2FA.
👉 Explore advanced security tools for crypto protection
FAQ: Coinbase Account Security
1. Why is SMS-based 2FA insecure?
SMS relies on cellular networks, which hackers exploit via SIM-swapping or phishing. Authenticator apps and security keys are offline alternatives.
2. Can I still get hacked with an authenticator app?
Yes (4.13% of takeovers), but risks are drastically reduced compared to SMS (95.65%). Malware or device theft could still compromise accounts.
3. What’s the most secure 2FA method?
Hardware security keys (0.04% takeover rate) offer the highest protection, as they require physical access.
4. Does Coinbase plan to retire SMS 2FA?
No official announcement yet, but users are urged to switch to stronger methods.
5. How do SIM-swapping attacks work?
Hackers impersonate victims to transfer their phone number to a new SIM, intercepting SMS OTPs. Read more here.
Key Takeaways:
- 95% of Coinbase users rely on SMS 2FA, which is highly vulnerable.
- Security keys and authenticator apps reduce takeover risks by 95%+.
- High-value accounts predominantly use advanced 2FA methods.
- Upgrade your 2FA today via Coinbase Security Settings.
For further reading on crypto security, check out 👉 this expert guide.