Daily fraud update: 4th June

Chris Lee

Security warnings after Coinbase crashes again

A number of traders in the crypto sphere have warned others off using the exchange Coinbase after it experienced yet more downtime.

In a series of official statements posted early on Tuesday in the London time zone, Coinbase sought to explain the problem.

“We are currently experiencing intermittent downtime on http://coinbase.com. We’re investigating this issue and we’ll let you know when we’re back up”, it said on the social networking site Twitter.

It later published a further statement confirming that it was operating again.

“http://Coinbase.com is back up and running. Thank you for your patience!” it said.

It appears that the downtime occurred around the time of a surge in Bitcoin’s value.

It led some other Twitter users to post with warnings against using the exchange, and to make comments about security and access.

“Remember folks, not your keys not your coins”, wrote one user calling themselves @Raverrevolution.

This appeared to be a reference to the fact that Coinbase acts as an intermediary, and that owners of crypto stored on it do not necessarily have guaranteed access in the event of downtime.

Coinbase has suffered a number of outages in recent months, including a recent incident in March.

According to the financial press, experts have warned against the use of the exchange.

“How many times do we have to say take your bitcoin off of Coinbase if you want to have access to it”, the crypto writer Rachel Siegel was quoted as saying after a similar incident in the past.

“…this is not the first time Coinbase has gone down and it surely will not be the last”, she was also quoted saying.

New crypto fraud prevention feature from Worldpay’s acquirer

The company which acquired the payment processing firm Worldpay has announced a new service designed to help prevent cryptocurrency fraud.

FIS, the company which acquired Worldpay, said that it would offer a tool called “Fraud Freedom”.

This tool has been created in conjunction with Forter, which is a fraud-tackling firm operating in the e-commerce sector.

It is understood that the new tool will offer brokers and exchanges the opportunity to identify and highlight transactions which show signs of being fraudulent.

According to Shane Happach, who serves as executive vice president and head of global e-commerce at FIS’s Worldpay Merchant Solutions unit, the crypto sector is “high risk” when it comes to fraud.

“The cryptocurrency market is growing rapidly, which is exciting to see, but the reality is that it is a high risk sector for fraud that demands innovative solutions”, he said.

“By combining with Forter’s market leading network and AI-based fraud prevention system, FIS can help its cryptocurrency clients shift from a niche market to the mainstream while maintaining high standards of security”, he added.

FIS acquired Worldpay last year in a move that created a firm with over 55,000 members of staff.

Chris Lee

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