Coinbase Users Face Annual Losses of $300M Due to Social Engineering Scams, Says ZachXBT
ZachXBT’s Recommendations for Enhanced Security
Coinbase users have reportedly lost over $65 million to social engineering attacks in the last two months, accumulating to an estimated $300 million annually, according to noteworthy crypto analyst ZachXBT. The exact losses may be even higher, as this figure doesn’t account for unreported incidents.
Key Insights:
- Scammers leverage stolen personal information to trick users by sending fraudulent emails that resemble official communications from Coinbase, containing fake case IDs that coax users into transferring funds to scam-controlled wallets.
ZachXBT pointed out that these scam tactics involve sophisticated cloning of the Coinbase site and corresponding emails to gain users’ trust. He emphasized the involvement of two primary groups orchestrating these schemes: one based in the Com and the other located in India, both predominantly targeting U.S. customers.
“Scammers clone the Coinbase site nearly 1:1 and enable sending different prompts to targets via spoofed emails,” noted ZachXBT.
In response to the rising scams, he urged Coinbase to bolster its security measures by:
- Making phone number inputs optional.
- Establishing a restricted account type for new users.
- Enhancing community education regarding scam prevention.
The growing trend in social engineering attacks underscores the urgent need for platforms like Coinbase to adopt more robust protective measures to safeguard their user base against such threats.
