Shocking: Coinbase Users Lose $45M to Scams in a Week, ZackXBT Claims

Cryptocurrency users, particularly those on major platforms like Coinbase, face constant threats. A recent report highlights a significant security concern: users reportedly lost millions to sophisticated scams in just one week. This news underscores the critical importance of understanding and enhancing your personal crypto security measures.

Understanding the Latest Coinbase Scams

According to prominent onchain sleuth ZackXBT, Coinbase users have collectively lost an alarming $45 million in the past seven days alone due to social engineering scams. This figure is part of a larger trend ZackXBT has tracked, suggesting hundreds of millions in annual losses for Coinbase users through similar methods. Social engineering involves manipulating individuals into performing actions or divulging confidential information, rather than directly attacking systems.

ZackXBT noted that this issue appears disproportionately high on Coinbase compared to other major exchanges. While the specific reasons for this are not detailed in the report, it suggests a potential vulnerability in user interaction or scam mitigation effectiveness compared to peers.

What is Social Engineering in Crypto?

Social engineering is a non-technical attack vector that exploits human psychology. In the context of crypto, it often involves:

**Impersonation:** Scammers pose as exchange support staff, project teams, or even potential employers.
**Phishing:** Using fake websites, emails, or messages to trick users into revealing login credentials or private keys.
**Malware Disguise:** Offering fake job applications, investment opportunities, or software updates that install malicious programs when downloaded.
**Urgency/Fear Tactics:** Creating a sense of panic (e.g., ‘your account is compromised, withdraw funds immediately’) to bypass rational thinking.

These tactics are designed to bypass technical security measures by targeting the user directly.

FBI Warnings Highlight Growing Crypto Fraud

The scale of crypto fraud has prompted warnings from law enforcement. The FBI has repeatedly issued alerts regarding social engineering scams targeting crypto holders:

**July 2024:** Warnings emerged after scammers posing as Coinbase support drained $1.7 million from one user.
**August 2024:** The FBI issued a general warning about scammers impersonating crypto exchanges to steal funds and data.
**September 2024:** The warning was expanded to include scams using fake employment offers, sometimes linked to state-affiliated hacking groups like those from North Korea, to distribute malware.
**March 2025:** Reports increased about scam emails mimicking legitimate exchange communications, urging users to move funds to external wallets.

These warnings underscore the diverse and evolving nature of attacks.

Protecting Your Crypto Security

Given the prevalence of these attacks, users must adopt robust crypto security practices. This includes:

**Verify Communications:** Always independently verify requests for information or actions by contacting the exchange through official channels (website, verified support numbers) and never using links or contact details provided in suspicious messages.
**Enable 2FA:** Use strong two-factor authentication (2FA), preferably hardware-based, on all accounts.
**Be Skeptical:** Treat unsolicited contact with extreme caution, especially if it involves urgency or requests for private information or actions like sending crypto.
**Educate Yourself:** Stay informed about common scam tactics.
**Use Strong Passwords:** Use unique, complex passwords for each service.

Coinbase’s chief security officer, Phillip Martin, has called for a more streamlined, unified framework for reporting and combating scams across the industry, recognizing the need for collective action.

Conclusion

The reported $45 million loss in a week highlights the severe and ongoing threat of social engineering and crypto fraud. While exchanges have security measures, the human element remains a primary target for attackers. Users must remain vigilant, educated, and proactive in protecting their digital assets. The industry also needs collaborative efforts to identify and mitigate these pervasive threats effectively.