Coinbase UX Glitch Triggers False Security Alarms—Users Spooked by Phantom Threats
Coinbase users got a unwelcome adrenaline rush this week when a UX hiccup fired off bogus security alerts. The glitch—now patched—had traders seeing red flags where none existed.
Who needs caffeine when your crypto exchange keeps you on edge with imaginary breaches? Classic 2025 finance—where even the bugs keep you HODLing through sheer panic.
Crypto UX challenges remain
Two-factor authentication (2FA) is a security process that makes your online accounts more secure by requiring at least two different ways to prove your identity before you can log in. It’s one of a number of ways to protect your privacy online.
But when users encounter confusing interface elements, they may make wrong decisions in response.
In 1993, while working at Apple, Don Norman, founder of Nielsen Norman Group (NN/g), coined the term "user experience" to describe how a user can use apps "without fuss or bother."
According to the guidelines published by NN/g, error messages should use plain, understandable language.
The "cognitive complexity" of using crypto apps "represents a significant barrier" to crypto adoption, Alona Dobshynska, senior product manager at Collabera, wrote in a study on how to improve user experience in crypto apps.
Some 34.7% of crypto users classify themselves as "rookies" and show less confidence in managing their digital assets, according to a 2021 paper cited by Dobshynska, explaining why users protect their private keys in different ways.
"Crypto-asset users differ in their security and risk perceptions," the paper read.
Because users come from different levels of familiarity with crypto, their decisions and behavior affect how they practice their security, the researchers suggested.
The Coinbase UX incident is a case in point, illustrating how a small labeling mistake can set off security alarms among users—even though there was no real threat.
