EddieJayonCrypto

 28 Apr 25

tl;dr

Coinbase fixed a user interface error that mislabeled failed password login attempts as "2-step verification failed" in account activity logs, causing users to mistakenly believe their accounts had been hacked. The update now correctly shows "Password attempt failed." This confusion led users to spe...

Coinbase corrected a user interface error that mislabeled failed password login attempts as "2-step verification failed," which caused unnecessary security concerns among users.

This mislabeling led users to mistakenly believe their accounts had been hacked, prompting hours spent checking devices for malware and changing passwords unnecessarily. The update now correctly shows "Password attempt failed" in account activity logs.

The incident highlights how confusing interface elements in crypto apps can hinder user experience and trigger misguided security responses. Two-factor authentication (2FA) is a key security measure requiring multiple ways to verify identity, but unclear messaging can cause user confusion.

Don Norman, a pioneer in user experience, emphasized that error messages should use plain and understandable language to avoid "cognitive complexity." This complexity remains a significant barrier to crypto adoption, especially for less experienced users managing digital assets.

A 2021 study showed that approximately 34.7% of crypto users consider themselves rookies, reflecting varying confidence levels in asset management and security practices.

The Coinbase UX incident serves as a clear example of how minor labeling mistakes can create security alarms, underscoring the importance of clear, user-friendly design to foster trust and accurate understanding among diverse users.

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