Some crypto users and Coinbase users complained of being scammed by scammers impersonating the crypto exchange.
One of the victims allegedly lost $1.7 million to the scam. Let’s discover more about this important news for Coinbase.
Coinbase User Scammed Out of Over $1 Million
The victim shared his story on X, claiming he was contacted by what seemed like a legitimate representative from Coinbase. The victim further revealed that he received an email from “Coinbase” affirming he was speaking with an exchange security team member.
The scammer alerted the victim to a transaction from his wallet and managed to present a convincing narrative. The fraudster then asked the victim to send his seed phrase to stop the transactions.
The victim sent a part of his seed phrase, knowing it was unsafe. Despite not sending his entire seed phrase, the scammer successfully wiped off $1.7 million from the wallet. Hiro Systems CEO Alex Miller explained that scammers record your entries on their fake websites even if you do not submit them.
Moreover, the victim’s partial entry of his seed phrases was enough for the scammer. Miller also revealed that he received a similar fake call from Coinbase security but did not fall for the scam.
Other X users confirmed similar experiences. These events reflect the growing trend of hackers employing varying strategies to defraud unsuspecting users. Coinbase has often urged its users to verify any messages and also stop sending out private information like seed phrases.
The Growth of Crypto Hacks
A recent Immunefi report claims over $500 million was lost to crypto hacks in Q2-2024. The report estimates that hacks and crypto fraud will have claimed almost $1 billion in 2024 alone. The bulk of these attacks focus on DeFi protocols. However, recent data suggests that centralized exchanges have emerged as weak targets.
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