Coinbase Users Lose $300 Million Annually Amid Rising Scam Incidents
Coinbase faces criticism for failing to prevent scams while restricting user accounts. A report by investigator ZachXBT reveals that over $300 million is lost annually to scams, with at least $65 million reported stolen from users between December 2024 and January 2025.
- Users experience account restrictions without prior notice, complicating recovery of lost funds.
- Scammers employ tactics like impersonation and phishing to access accounts using stolen personal data.
- Fraudulent emails mimic official communications, leading victims to phishing sites that drain their accounts.
- Criminal groups operate Telegram channels selling access to phishing tools.
- Coinbase has not effectively blocked known theft addresses despite having compliance tools available.
- The company's policies may hinder legitimate users while allowing criminals to operate freely.
ZachXBT recommends immediate security improvements, such as:
- Eliminating phone numbers as a default recovery option
- Establishing safer account types for vulnerable users
- Enhancing phishing detection mechanisms
Additionally, physical attacks on crypto holders are rising, with reports indicating 18 incidents in 2023, increasing to 24 in 2024. Security firms are responding with insurance products against violent robberies, covering up to $100 million in losses.