Social Engineering Scams Targeting Coinbase Users

Onchain sleuth ZachXBT reported that Coinbase users have suffered over $65 million in losses due to social engineering scams between December 2024 and January 2025.

ZachXBT believes this estimated amount is likely much lower than the actual losses, as it excludes claims made to Coinbase support and law enforcement.

He detailed how one scammer misused stolen personal information from private databases to deceive a victim into thinking there were multiple unauthorized login attempts on their account. The scammer sent a fraudulent email disguised as a correspondence from Coinbase, complete with a fake case identification number, instructing the victim to transfer funds to a Coinbase Wallet while whitelisting a specific address.

ZachXBT highlighted that scammers replicate the Coinbase website nearly identically, allowing them to send various prompts to victims through spoofed emails.

He criticized Coinbase for not adequately addressing the issue, stating that yearly losses from these scams likely exceed $300 million. “Coinbase must urgently make necessary changes as users are scammed for tens of millions monthly,” he urged.

According to ZachXBT, scammers’ addresses are often unreported by Coinbase, even after prolonged thefts, raising concerns about Coinbase’s ineffectiveness in combatting these scams.

He emphasized the need for Coinbase to reconsider its policies, such as making phone number inputs optional for KYC-verified users, establishing a beginner account type with restricted withdrawals, and enhancing community outreach.

The Block contacted Coinbase for comment.