Coinbase Users Lose $46M to Scams in March, Annual Losses Hit $300M
1min read In March, coinbase users collectively lost $46 million to social engineering scams. This alarming figure underscores the growing threat of fraud targeting the exchange's user base. On March 27, a single Coinbase user fell victim to a scam, losing $34.9 million. This incident is part of a broader trend where users have been targeted by sophisticated social engineering operations, resulting in significant financial losses.
These scams have been ongoing for over a year, with criminals employing various tactics to deceive users. For instance, in November, scammers posing as Coinbase Support managed to steal over $6.5 million. The persistent nature of these attacks has led to an estimated annual loss of $300 million, according to ZachXBT, a prominent crypto sleuth who has been tracking these incidents.
Despite the severity of the situation, Coinbase's response has been criticized as inadequate. ZachXBT has accused the exchange of being passive in addressing these scams, failing to warn users or cooperate with investigators. This lack of action has raised concerns about the exchange's commitment to user security and has led to calls for more robust measures to protect users from such threats.
The increasing rate of these scams and the staggering amount of funds lost highlight the urgent need for Coinbase to enhance its security protocols and user education initiatives. Users are advised to remain vigilant and take necessary precautions to safeguard their assets from social engineering threats.
Ask Aime: What measures should Coinbase take to prevent social engineering scams?
