With the growing adoption of crypto comes an even more covert threat – social engineering scams. According to reports, the top digital asset exchange, Coinbase, incurs losses of over $330 million yearly due to manipulative tactics. Blockchain investigator ZackXBT has revealed scammers stealing $45 million weekly, thus showing how severe this crisis is.
Tactics behind the scams
Social engineering involves more deception than technical hacks. Scammers mimic Coinbase’s support through emails, phone calls, or by imitating other websites that pretend to be Coinbase. Their advertisements appear legitimate, tricking users into providing credentials or shifting properties into fake wallets.
Phishing is a top method. Victims receive emails with fake notifications appearing as legitimate Coinbase notifications, nudging them to visit bogus websites to steal their login details and authentication codes. Often, Scammers exploit personal data from breaches or the dark web to build convincing stories that deceive users. Playing on the note of urgency, fear, or trust in authority, these scams can disarm even careful users.
Coinbase’s response: Too little, too late?
Coinbase has been criticised for slow messages and the absence of proactive fraud solutions. Victims complain about bad customer support and the lack of assistance refunding stolen money. While Coinbase provides general security advice, it has not launched real-time fraud alerts or wallet-blocking systems.
Another big failure is education. Most users do not know how such scams are carried out. Despite Coinbase’s calls for improved fraud reporting mechanisms, implementation is slow, leaving most users vulnerable to multiple attacks.
Securing the future of crypto trading
Coinbase should cooperate with cybersecurity companies and regulators to trace stolen funds and dismantle the scam networks. Sharing statistical information between industries would stop recurring attacks from one platform to another. Social engineering scams are bleeding trust and money out of the crypto world. With $330 million lost in a year, Coinbase needs to do things right, secure users with better tech, smart support, and ongoing education.
