Coinbase to fix 2FA account activity entry freaking out users

Coinbase is fixing a misleading account activity message that has caused confusion and anxiety, making users think their credentials were compromised. Over the past couple of weeks, numerous people have contacted BleepingComputer about concerns that they think Coinbase has a serious security issue. After receiving Coinbase phishing emails or texts, they logged into their accounts and checked the activity log, finding numerous entries stating "second_factor_failure" or "2-step verification failed" with login attempts from unusual locations. Two-factor authentication prompts usually occur after a user successfully logs in with their credentials, so they immediately thought that their passwords were compromised and that only 2FA saved them from their account being hacked. This led them to change their passwords, check for malware, and grow anxious over what they believed was a breach. Making matters worse, these users claimed to have a complex, unique password at Coinbase, and there were no signs of malware on their devices, making them believe that Coinbase had been breached. However, it turns out that the "second_factor_failure" or "2-step verification failed" account activity messages are shown in two different scenarios—when a user incorrectly enters the wrong 2FA code or when someone tries to log into their account with the wrong password. BleepingComputer was able to confirm this by logging into someone's account with the wrong password and the person telling us that thei...