ZachXBT Reveals Coinbase Users Losing $300M Annually to Social Engineering Scams

According to crypto analyst ZachXBT, Coinbase users have lost an estimated $300 million each year to social engineering scams, with over $65 million stolen in just the past two months. This data was shared in an X post on Monday.

ZachXBT acknowledged that the actual losses could be even higher, as many scams go unreported. Coinbase has not yet issued a formal comment on the situation, but when approached, the exchange referred to a recent blog post that provides guidance on recognizing and avoiding social engineering attacks.

The scams typically involve hackers using stolen personal information to impersonate Coinbase’s official communications. Fake emails, which often include false case numbers, prompt users to send funds to scammer-controlled wallets.

“These scammers replicate Coinbase’s site with near-identical pages and use spoofed emails to manipulate users,” said ZachXBT. “Two main groups are behind these attacks: hackers from the Com region and cybercriminals in India, both focusing on U.S. customers.”

In addition, ZachXBT criticized Coinbase for suggesting that users stop using VPNs, pointing out that scammers intentionally block VPN usage on phishing sites to evade detection.

To help prevent these scams, ZachXBT recommended that Coinbase strengthen its security measures by making phone number entries optional, offering a restricted account type for new users, and increasing community education on how to avoid falling for such scams.