Coinbase users reportedly lose over $300M yearly via social engineering scams

On-chain investigator ZachXBT recently shared data revealing that Coinbase users lose more than $300 million annually due to social engineering scams.

Over the past few months, numerous users have taken to social media to report sudden account restrictions, which ZachXBT attributed to the exchange’s aggressive risk models and a failure to mitigate ongoing scams.

The investigation, conducted in collaboration with a researcher identified as Tanuki42, analyzed Coinbase withdrawals and direct messages from victims to estimate the extent of thefts across multiple blockchain networks.

Their data suggested that bad actors stole at least $65 million from Coinbase users between December 2024 and January 2025. However, they acknowledge that this figure is likely an underestimation, as it does not account for Coinbase support tickets or law enforcement reports.

One documented case involved a victim who lost approximately $850,000. The stolen funds were traced to a consolidation address tied to more than 25 other victims, which the report labeled “coinbase-hold.eth.”

Social engineering scams

Social engineering scams typically involve attackers contacting victims via spoofed phone numbers and using personal information obtained from private databases to gain their trust.

Victims are told that their Coinbase accounts have been subject to unauthorized login attempts. The scammers then send a fraudulent email that appears to be from Coinbase, containing a fake case ID for verification.

When instructed to transfer funds to a Coinbase Wallet and allowlist an address, victims unknowingly give the scammers control over their assets. The scams are further facilitated by fake cloned Coinbase websites and sophisticated phishing panels advertised in Telegram channels.

According to the report, two main groups orchestrate the scams: individuals from ‘The Com’ and cybercriminals based in India, who primarily target US customers.

ZachXBT also highlighted a discrepancy in Coinbase’s security recommendations. While Coinbase employees have warned users against using VPNs to prevent being f

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Author: Gino Matos

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