Social Engineering Crypto Scams Target Coinbase Users

8 months ago 4

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Coinbase’s earning performance might have sent the crypto community to the moon, but reports suggest a social engineering scam targets the exchange’s users.

Blockchain investigator ZachXBT uncovered this tactic, highlighting instances where victims lost significant sums to the fraud.

The Coinbase Reset Fraud

The scheme, known as the Coinbase reset fraud, involves crypto scammers gathering personal information from users to deceive them into resetting their Coinbase login credentials. Shockingly, these scammers deprived a victim of over 1,400 ETH, valued at an estimated $4 million.

“The scammers have to social engineer [their victims] into resetting login so they can gain access. It’s good to add a security key as 2FA, do not reuse emails or passwords, etc,” ZachXBT advised.

Community members speculated about a potential insider involvement. However, debates persist regarding whether the attackers are impersonating staff of the cryptocurrency exchange. Meanwhile, in a bizarre turn, one scammer reportedly swindled another, highlighting the complex dynamics within these illicit activities.

It is worth noting that Coinbase has yet to respond to BeInCrypto’s request for comment on the issue.

Coinbase Reveals 2024 Focus

Amidst these security concerns, Coinbase CEO Brian Armstrong outlined the company’s strategic focus for this year to enhance its crypto payments infrastructure and expand internationally. The firm would further delve into derivatives trading to boost revenue and also work on developing its Coinbase Wallet into an on-chain super application.

“We’ll keep driving regulatory clarity for crypto via the courts, standwithcrypto.org, SuperPac contributions, and encouraging legislation in DC,” Armstrong continued.

This revelation followed the firm’s impressive fourth-quarter revenue, leaving analysts’ predictions in the dust. The company reported a 45% net revenue increase to $905 million and a net income of $273 million for the quarter. The firm saw a total revenue of $3.1 billion last year.

Armstrong highlighted the positive impact of traditional financial institutions’ growing interest in crypto on the firm. Since the launch of the ETFs, the firm has observed a consistent increase in net inflows across its retail and institutional products. It is entrusted with asset custodial services for nearly 90% of the roughly $37 billion Bitcoin ETF assets.

“We’re in a strong financial position, our long term focus on compliance has proved to be right vs competition, and we’re well positioned to help accelerate crypto adoption, updating the global financial system,” Armstrong concluded.