Coinbase UX Glitch Caused False Security Alarms for Users: Report

Summary

Coinbase fixed a user interface error that misidentified failed password login attempts as "2-step verification failed" in account activity logs. This mislabeling led users to mistakenly believe their accounts had been compromised, prompting unnecessary security measures such as malware checks and password changes. The system now correctly displays "Password attempt failed." Confusing interface elements can lead to poor user decisions, highlighting the importance of clear communication in error messages. A significant portion of crypto users, 34.7%, identify as "rookies," indicating varying levels of confidence and understanding in managing digital assets. The incident underscores how minor errors in user experience can trigger significant user anxiety, despite the absence of actual threats.