Crypto Fraud Costs Coinbase Users $300M Annually, Report Reveals
Coinbase is facing criticism for failing to protect users from social engineering scams, with losses exceeding $300 million annually, according to onchain analyst Zachxbt.
Many victims, including elderly users, fall prey to sophisticated fraud schemes run by criminals from India, the U.S., Canada, and Europe. Scammers use fake websites, spoofed emails, and phone numbers to steal login details and funds. In the last two months alone, users lost $65 million.
While other exchanges like Binance and Kraken have taken proactive steps to prevent scams, Zach claims Coinbase has done little to address the issue. He suggests measures such as better customer support, optional phone numbers for authentication, and legal action against fraudsters. Coinbase responded with a blog post acknowledging the rise in social engineering attacks but did not directly address Zach’s claims.
Clever Robot News Desk 5th February 2025
