Coinbase CISO: Social engineering scams top threat to crypto users

According to Jeff Lunglhofer, Coinbase’s chief information security officer, social engineering scams are currently the biggest threat to crypto users and holders.

Lunglhofer spoke to crypto.news in an interview about the rise of such scams, which are a threat to both novice and experienced crypto users.

“Social engineering scams are by far the number one threat to crypto enthusiasts and crypto holders and investors today,” said Lunglhofer.

Three ways to avoid social engineering scams

Lunglhofer emphasized that although these scams are not unique to the crypto sector, their frequency has increased over the past several years. He suggested two primary precautions to avoid crypto scams.

First, ignore any unsolicited calls claiming to be from reputable exchanges — like Coinbase or Kraken. If you receive a call, hang up, go directly to the company’s website, and contact them through official channels.

This could prevent “up to 80%” of social engineering scams, according to Lunglhofer.

Secondly, crypto users must understand the difference between self-custody and exchange custody. With self-custody, like Coinbase Wallet, you control your assets and must protect your seed phrases, which should never be shared.

“You control [your wallet] — we have no control over that.”

Exchange custody is a type of crypto wallet where a third-party service manages your private keys. This provider is responsible for the security and management of your crypto assets.

A third piece of advice Lunglhofer shared is to avoid sending crypto to anyone you don’t personally know. Scammers exploit emotional connections through romance scams, especially in online settings where relationships often begin virtually.