Cryptocurrency users are being targeted by a surge of scammers impersonating representatives from Coinbase, a leading cryptocurrency exchange. These scams have resulted in significant losses, with one victim reportedly losing a staggering $1.7 million.
The scammers employ various tactics, including phone calls and emails designed to appear legitimate. They may claim to be from Coinbase’s security team and warn users of suspicious activity on their accounts, such as unauthorized login attempts or compromised wallets.
One victim’s account details the strategy. The scammer called, posing as a Coinbase security representative, and followed up with a seemingly official email “verifying” the call. They then fabricated a story about the victim’s wallet being compromised and needing immediate action.
Fearing for their funds, the victim was tricked into entering a portion of their seed phrase on a fraudulent website provided by the scammer. Even though they didn’t submit the complete phrase, experts believe this partial reveal was enough for the scammers to crack the entire code through brute-force methods and drain the wallet.
This incident highlights the critical importance of safeguarding your seed phrase. Never share it with anyone, not even someone claiming to be from Coinbase. Coinbase will never request your seed phrase under any circumstances.
Another victim reported a similar social engineering attempt. A scammer, posing as a Coinbase employee, contacted them via phone and claimed to detect a login attempt from a different location. The scammer then offered a fake password reset link, aiming to steal the user’s login credentials. Thankfully, this user remained cautious and contacted Coinbase directly, exposing the scam.
Also Read: Coinbase Polkadot ETF On July 15th? Altcoins Set For 150% Surge
These incidents are a stark reminder for all crypto users to be vigilant against phishing attempts and social engineering scams. Here are some key points to remember:
- Never share your seed phrase with anyone.
- Be wary of unsolicited calls or emails claiming to be from Coinbase.
- Always verify the legitimacy of any communication by contacting Coinbase directly through their official channels.
- Do not click on links or download attachments from suspicious emails.
- Enable two-factor authentication (2FA) on your Coinbase account for an extra layer of security.
By following these steps, you can significantly reduce your risk of falling victim to these scams and protect your hard-earned cryptocurrency.
Coinbase has not yet responded to a request for comment.
Statistics show that around $1.19 billion has already been lost to crypto security breaches in the first half of 2024, with a significant portion stemming from phishing and seed phrase compromise attacks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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