Coinbase Users Lose $65M in Social Engineering Attacks

Crypto researcher ZachXBT has revealed that Coinbase users have collectively lost over $65 million to social engineering attacks in the past two months. This alarming figure suggests an estimated annual loss of $300 million due to such attacks, with the actual losses potentially being even higher, as many cases may go unreported.

ZachXBT explained that scammers exploit stolen personal data to send fake emails, purporting to be from Coinbase, and include fake case IDs to deceive users into transferring funds to scammer-controlled wallets. In a viral post, ZachXBT shared that a Coinbase employee advised users to stop using VPNs to avoid being flagged, while scammers are blocking VPNs on phishing sites. ZachXBT criticized Coinbase for failing to address the root cause of the problem.

Coinbase, a leading cryptocurrency exchange, has been grappling with an increasing number of social engineering attacks targeting its users. These attacks, which often involve phishing emails and fake websites, aim to trick users into revealing sensitive information or transferring funds to scammer-controlled wallets.

The growing concern over social engineering attacks has led to calls for stricter security measures and better user education. Coinbase has been working to enhance its security protocols and provide users with clear guidelines on how to protect themselves from these attacks. However, the recent revelations by ZachXBT highlight the ongoing challenge faced by the crypto industry in combating fraudulent activities.