Coinbase, a leading cryptocurrency exchange, has become the most impersonated brand by scammers in the Web3 space, according to a recent survey.
Scammers often use the trusted Coinbase name to trick investors into sending their digital assets to fraudulent accounts.
Phishing attacks are a common method used by these scammers.
They create fake websites or send deceptive emails, pretending to be Coinbase, to steal personal information and funds.
Over the past four years, there have been 416 reported phishing attacks using the Coinbase name, according to a report by Mailsuite shared with Cointelegraph.
This report analyzed over 1.14 million scams, revealing that over 249,000 incidents involved impersonating a company or organization.
Riding on Coinbase's Popularity
Coinbase is the world’s second-largest centralized cryptocurrency exchange (CEX), handling over $1.8 billion in daily trading volume, according to CoinMarketCap.
It boasts a high trust score of 10/10 and receives more than 40.9 million monthly visits, as reported by CoinGecko.
Despite its strong reputation, this popularity makes it a prime target for scammers.
While Coinbase is the top target among the biggest crypto firms, other well-known brands are also frequently impersonated.
For example, Bank of America faced 645 phishing attempts, Mastercard had 1,262, and Facebook’s parent company,
Meta, was impersonated in a staggering 10,457 reported scams over the past four years. The U.S. Internal Revenue Service (IRS) was also heavily targeted, with at least 9,762 scams.
Coinbase made it to the list of the most impersonated American brands | Mailsuite
The Ongoing Threat of Crypto Scams
Crypto scams and exploits continude to be a major issue, even as the industry matures.
A report by Crystal Intelligence shared with Cointelegraph highlighted that nearly $19 billion worth of crypto has been stolen over the past 13 years through 785 reported hacks and exploits.
The largest single theft was the 2019 PlusToken fraud, where attackers made off with $2.9 billion worth of Bitcoin and Ethereum.
Crypto hacks remain a significant obstacle to mainstream trust and adoption. The first quarter of 2024 saw $542.7 million worth of stolen funds, a 42% increase compared to the same period in 2023.
The Base chain, part of Coinbase, experienced a notable rise in crypto thefts in April, with a 145% monthly increase, according to Scam Sniffer, a real-time Web3 anti-scam platform.
The Impact of Increased Scam Activity
Scam Sniffer's April Phishing Report detailed a dramatic rise in scam activity on the Base chain, despite an overall reduction in the sector.
Two of the top 10 largest thefts in April occurred on Base, accounting for 21% of the total theft that month. Since January, Base has seen about a 1,900% increase in scammer activity, resulting in roughly $170,000 lost to phishing scams.
🧵 [2/6] Despite the overall decline, theft on the Base chain saw a substantial increase of 145% from the previous month.
— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) May 6, 2024
Notably, 2 of the top 10 largest single thefts occurred on this chain, accounting for 21% of the month's total theft. pic.twitter.com/kTwteJNhJu
In April alone, 34,619 victims lost more than $38.6 million to various scams, a 46% decrease from March.
Most of these stolen assets were ERC20 tokens, taken through phishing signatures like Uniswap Permit2, IncreaseAllowance, and Permit. Scammers often use fake Twitter accounts and deceptive comments to lure their victims.
Wallet Drainers: A Growing Concern
Scam Sniffer also warned users about wallet drainers, malicious tools designed to quickly empty wallets once they gain access.
Despite increased phishing alerts from several wallets, these drainers have found ways to bypass security measures.
Recent major hacks include Hedgey Finance, which lost about $47 million, and a hacker stealing millions of dollars worth of Arbitrum (ARB) tokens and transferring some to the Bybit exchange.
Additionally, the Fix Float exchange lost $3 million due to a third-party provider, and Grand Base was hacked for $2.67 million.
As crypto scams continue to evolve, users must stay vigilant and informed.
Scammers are increasingly sophisticated, and even the most reputable brands like Coinbase can be used as bait.
Always verify the authenticity of any communication claiming to be from Coinbase and be cautious of unsolicited messages or links.
Stay safe in the crypto world by double-checking everything and trusting only verified sources.