ZackXBT reveals that $45 million has been stolen from Coinbase users in a week, bringing annual losses to $330 million due to social engineering scams. The FBI warns users about these scams, which have involved impersonation tactics and malicious downloads. Coinbase’s security chief calls for improved scam reporting systems to combat this rising threat.
In the past week, crypto analyst ZackXBT reported a staggering $45 million has been stolen from Coinbase users due to social engineering scams. These latest figures highlight ongoing vulnerabilities in Coinbase’s user base and mark a troubling trend within the cryptocurrency sector. ZackXBT emphasizes that these him losses are part of broader issues endemic to crypto exchanges, which tend to be especially susceptible to these kinds of attacks.
Coinbase has yet to respond to inquiries from Cointelegraph regarding the situation or any actions being taken to mitigate these issues. Unfortunately, ZackXBT’s assessments suggest that scams are a significant problem for crypto platform users. In total, he estimates that losses from such scams could reach as much as $330 million annually — a figure that underlines the increasing sophistication of these criminal activities reaching crypto holders.
The FBI has been vocal about the growing threat of social engineering scams targeting cryptocurrency investors. Back in July 2024, an alarming case was reported where scammers impersonated Coinbase support staff, stealing $1.7 million from unsuspecting users. By August, the FBI was issuing warnings about such scams, reiterating the dangers of identifying fake communications masquerading as legitimate entities.
This troubling trend was further detailed in a September 2024 warning from the FBI, which pointed out tactics used by North Korean hackers, including fake employment offers. These scams often involved tricking victims into downloading malicious software presented as benign applications relating to jobs or investment opportunities.
Users have also reported an uptick in phishing emails formatted to look like genuine communications from exchanges, urging them to withdraw their funds to external wallets. These kinds of scams are becoming alarmingly prevalent, suggesting that picking up on the warning signs is becoming increasingly difficult for the average user.
In light of these developments, Phillip Martin, Chief Security Officer at Coinbase, has called for a more streamlined approach to reporting and combating these scams. He advocates for a single, consolidated framework where users can easily report suspicious activity, thereby enhancing overall security measures and helping to protect crypto holders from ongoing threats.
