Coinbase Users Lose $300M Annually to Social Scams
Coinbase users are reportedly losing over $300 million annually due to social engineering scams, with more than $65 million lost in just the past two months, according to crypto analyst ZachXBT. Scammers use stolen personal data to send fake emails that mimic Coinbase's official communications, tricking users into transferring funds to scammer-controlled wallets. ZachXBT emphasizes that the real losses could be higher since many incidents go unreported. He cited that scammers effectively clone the Coinbase site and use spoofed emails to lure targets. Two primary groups behind these scams are based in India and a specific undisclosed group, both are focusing their efforts on US customers. To address the issue, ZachXBT recommends that Coinbase enhance security measures such as making phone number inputs optional, creating a restricted account type for new users, and improving user education on scam prevention. Coinbase has not yet commented publicly on the situation.
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