# Coinbase scams: How they work and how you can stop them

The phone rings and it’s a number you don’t recognize. You answer and there’s a friendly yet concerned voice on the other end. The caller says they’re from Coinbase, your account is in danger, and they’re here to help. The trap is set.

In recent months, many bitcoin and crypto holders have been the target of a series of phishing and social engineering attempts related to their Coinbase accounts.

As much as $300 million in assets has been [lost in these scams](https://x.com/zachxbt/status/1886411879939031530), including $65 million in December 2024 and January 2025, according to researcher ZachXBT.

In this overview, we’ll discuss what you should know to protect yourself and your assets.

## How the scams work

The “Coinbase scams” are a combination of phishing and social engineering. **Phishing** is when scammers try to bait you into giving up sensitive information like a seed phrase with unsolicited communications. **Social engineering** is when scammers manipulate you into giving up information or taking an action.

There are a variety of tactics used, and scammers are known for adapting their scripts on the fly. Here’s an example of how one of the scams could work.

1. The scammer calls you on the phone and says they are from Coinbase (or another exchange)
2. They inform you of suspicious activity or unauthorized logins on your account.
3. They send you an email containing a link that appears to come from Coinbase. This email will describe steps you can use to secure your account, such as resetting your password or enabling two-factor authentication (2FA).
4. If you have SMS-based 2FA enabled, a text message may arrive to the scammer’s phone without your knowledge as the result of a SIM swap.
5. The link directs you to a spoofed Coinbase webpage
6. The page asks you for your login credentials or a seed phrase. Alternatively, the scammer may talk you into sending funds from a new address.
7. If you provide the requested information, the scammers use it to drain your account or your on-chain address.

## How scammers find victims

Trading bitcoin and other crypto creates a lot of data. Some of it is public on blockchains while other data arises from KYC identification practices that link trading activity to contact information and other personally identifiable information. While that latter data is expected to be kept private, it can nonetheless end up public on hacker forums and other places on the Dark Web.

Social engineers parse through this data and social media activity to zero in on likely targets with enough assets to be worth their time. It’s common for crypto investors to have accounts at multiple exchanges, so bad actors will often assume you have a Coinbase account, especially if you are based in the U.S.

## Why is this scam successful?

Humans are social creatures and we have psychological biases. While we tend to preach “don’t trust, verify” in bitcoin and security circles, our defenses often drop when an actual scam shows up in our lives. We think it’ll never happen to us, and when it does, it’s easy to believe another human voice actually cares.

## Navigating account restrictions

Coinbase has restricted my account without any explanation, and support refuses to provide clarity.

As a paying Coinbase One customer with over $2,000,000 in inaccessible assets, I’d appreciate an immediate explanation.

If you have bitcoin or other assets sitting in an exchange account, you are at the mercy of that exchange. While tagging them on social media may get their attention, it is up to the exchange to lift the restriction and you will have to comply with their process since they hold the keys.

## Tips for avoiding scams

As a rule of thumb, never trust incoming messages. There are three telltale signs of a scam:

- Someone contacts you without you having contacted them
- They say you have to take an action right now — time is a factor
- The request involves money, a valuable asset, or sensitive information

If you receive one of these requests, verify it out of band through another form of communication. For example, if you receive a phone call from someone claiming to be Coinbase, log onto Coinbase with another device and contact their support team there. Remember that Coinbase and other exchanges are highly unlikely to ever call you.