Researcher Zachxbt recently shared data, which shows that Coinbase users lose more than $ 300 million annually due to social engineering scams.
In recent months, countless users have gone to social media to report sudden account restrictions, which Zachxbt attributed to the aggressive risk models of the exchange and the failure to reduce continuous scams.
The research, conducted in collaboration with a researcher identified as Tanuki42, analyzed Coinbase recordings and direct messages from victims to estimate the size of thefts in multiple blockchain networks.
Their data suggested that bad actors stole at least $ 65 million from Coinbase users between December 2024 and January 2025. They acknowledge that this figure is probably an underestimation because it does not take Coinbase Support tickets or law enforcement reports into account.
A documented case was a victim who lost around $ 850,000. The stolen funds were reduced to a consolidation address that was linked to more than 25 other victims, which called the report “Coinbase-thold.eth”.
Social Engineering scams
Social Engineering -Futing usually concerns attackers who contact victims via falsified telephone numbers and the use of personal information obtained from private databases to gain their trust.
Victims are told that their Coinbase accounts are subject to unauthorized login attempts. The scammers then send a fraudulent e -mail that seems to be out of Coinbase, with a fake case -ID for verification.
When the assignment to transfer funds to a Coinbase portion and an address, victims unconsciously control the scammers over their assets. The scam is further facilitated by fake -cloned coinbase websites and Advanced phishing panels advertised in telegram channels.
According to the report, two main groups orchestrate the scams: individuals from ‘De COM’ and cyber criminals based in India, who mainly focus on American customers.
Zachxbt also emphasized a discrepancy in Coinbase’s security recommendations. Although Coinbase employees have warned users against the use of VPNs to prevent them from being marked as a suspect, threatening actors explicitly block VPN access to phishing sites, allowing them to prevent detection.
According to chains salysis, scammers stolen $ 4.6 billion from victims due to social engineering attacks between 2023 and 2024.
Alleged incidents
The report claimed that Coinbase had experienced several security incidents and had not tackled them publicly. These include hacks with old API tests used for tax software, a vulnerability with which verification codes can be sent to each e -mail, regardless of the account status, and a theft of $ 15.9 million from Coinbase commerce in 2023.
The researchers added that the stolen funds are often not marked in compliance tools, even after weeks of theft. Victims often report problems in reaching Coinbase customer service, in particular outside of American office hours.
The report also emphasized that competing fairs, including Kraken, OKX and Binance, have no similar problems.
To solve these problems, Zachxbt outlined various measures that Coinbase could implement to reduce this scams, such as making telephone numbers optional for advanced users who use authentication apps or security keys, in which a beginner/older user account type is introduced with limitations On withdrawals, with improved, with improved customer support and outreach.
In addition, the researcher on the chains suggested to increase the involvement of the community by blog posts on fund repair, full-time incident response, the active marking of theft addresses and blocking phishing domains.
Despite security problems, the report acknowledged that Coinbase has maintained various strengths, including Stablecoin on/off-roots, the development of the Base Blockchain, Asset Recovery instruments, legal opposition against the US Securities and Exchange Commission and its guardianship product.
However, the report argued that more can be done to prevent financial losses for users.
With losses reportedly he reaches tens of millions of monthly, Coinbase is confronted with increasing pressure to tackle the vulnerabilities of security and to improve the protection of users. Competitive exchanges have not experienced comparable levels of targeted scams, as a result of which questions are asked about the adequacy of the current Coinbase security measures.
