Coinbase Users Lose Millions Annually – Here is How

An on-chain investigator, operating under the pseudonym ZachXBT, has revealed alarming details about the scale of social engineering scams affecting Coinbase users.

According to ZachXBT, who has a substantial following on social media, Coinbase customers lose over $300 million annually to these scams, with around $65 million stolen just between December 2024 and January 2025.

ZachXBT shared a particularly troubling case involving a victim who lost nearly $850,000 after being targeted by scammers using spoofed caller IDs and emails impersonating Coinbase support.

The fraudsters gained the victim’s trust by referencing unauthorized login attempts and sent a fake email, appearing to come from Coinbase, which included a fake case ID. The victim was tricked into transferring funds to a fraudulent Coinbase Wallet and whitelisting an address for further transactions.

ZachXBT also noted that the scammers use counterfeit versions of the Coinbase website, designed to look almost identical to the legitimate one, to deceive users into thinking they are on the official platform.

To combat these scams, ZachXBT has urged Coinbase’s leadership to take several steps. These suggestions include making phone numbers optional for advanced users with extra security measures, creating accounts for beginners or elderly users that restrict withdrawals, and improving community outreach to help users recover stolen funds. Additionally, he advocates for legal action against companies like TransUnion, whose TLOxp tool is often exploited by criminals for gathering personal information, and against the scammers themselves.