When it comes to online security, one of the most important things to consider is whether or not it’s safe to give your social security number (SSN) to Coinbase. While Coinbase is a legitimate company with robust security measures in place, there have been a number of high-profile data breaches in recent years that have put consumers on edge.
In addition, Coinbase has been known to request SSNs from users who are trying to verify their accounts. This has led some to question whether or not the company is taking proper precautions with this sensitive information.
So, is it safe to give your SSN to Coinbase? Let’s take a closer look.
Coinbase is a digital currency exchange that allows users to buy and sell cryptocurrencies like Bitcoin, Ethereum, and Litecoin. The company is headquartered in San Francisco and was founded in 2012.
Coinbase has over 25 million registered users and has processed more than $50 billion in transactions.
Coinbase is considered to be one of the most popular and well-trusted cryptocurrency exchanges in operation today. The company has built a strong reputation for security and has implemented a number of measures to protect user data.
NOTE: WARNING: Giving your Social Security Number (SSN) to Coinbase may put you at risk of identity theft and other financial crimes. It is not recommended that you provide your SSN to Coinbase unless absolutely necessary. Instead, use a secure form of identification that does not require a SSN such as a Driver’s License or Passport. If you must use your SSN, make sure that the data is encrypted and stored securely by Coinbase.
For example, Coinbase stores 98% of customer funds offline in cold storage wallets and uses 2-factor authentication for all account access.
Despite these security measures, there have been a number of high-profile data breaches at Coinbase in recent years. In 2016, a hacker gained access to over 60,000 user accounts and stole over $1 million worth of digital currency.
In 2017, another hack exposed the personal information of over 50,000 Coinbase users.
While these breaches are concerning, it’s important to note that in both cases the hackers did not gain access to any customer funds stored on Coinbase. This is due to the fact that Coinbase stores the vast majority of customer funds offline in cold storage wallets that are not connected to the internet.
In addition to data breaches, another concern for consumers is that Coinbase has been known to request SSNs from users who are trying to verify their accounts. This is due to the fact that Coinbase is required by US law to verify the identity of all customers who open an account and conduct transactions on the platform.
While requesting SSNs from users may be necessary for compliance purposes, it does raise concerns about how this sensitive information is being handled by Coinbase. There have been no reports of customer SSNs being compromised in any data breaches at Coinbase, but this is still something that consumers should be aware of before sharing this information with the company.
So, should you give your SSN to Coinbase? While there are some concerns about how this sensitive information is being handled by the company, it’s important to remember that Coinbase is a legitimate business with robust security measures in place. If you are comfortable with sharing your SSN with Coinbase for account verification purposes, then it is safe to do so.