Coinbase Phishing Scams: Victims Have Recovery Options

According to news[1] reports[2], malicious hackers have stolen millions in cryptocurrency from Coinbase users through phishing scams. Coinbase may be liable to the victims of phishing attacks, although users should be aware that their user agreement requires them to resolve disputes through arbitration. That means you can’t sue Coinbase, but you can pursue the recovery of lost funds through an arbitration proceeding before the American Arbitration Association. If you or someone you know lost funds from Coinbase accounts as the result of a phishing attack, contact our law firm at 800-767-8040 for a free consultation.

What Is Phishing?

As Coinbase warns users[3], phishing attacks occur when bad actors impersonate people or businesses in order to trick unsuspecting users. They do so by sending emails or messages, or even by creating entire webpages, designed to induce victims to provide their personal information. For instance, a user might receive an email that appears to be from Coinbase prompting them to reset their password. They follow a link to a webpage that appears legitimate, then enter their credentials in a web form. The attacker receives this information and uses it to access their accounts. 

Is Phishing Related to Spoofing?

As the Federal Bureau of Investigation explains[4] in a resource for the public, phishing scams may use “spoofing” tactics. Spoofing occurs when an attacker “disguises an email address, sender name, phone number, or website URL—often just by changing one letter, symbol, or number—to convince you that you are interacting with a trusted source.” 

These may involve social engineering: for instance, an attacker could find out information about your work or family from social media, then spoof an email that appears to be from your employer or a relative. “Criminals count on being able to manipulate you into believing that these spoofed communications are real,” the FBI warns, “which can lead you to download malicious software, send money, or disclose personal, financial, or other sensitive information.”

How Can Coinbase Users Protect Against Phishing Scams?

The FBI and Coinbase [5]both discuss ways that users can protect themselves from phishing scams. Perhaps the most important is simply to be cautious with your personal information: remember that companies will rarely email or text you seeking your login credentials, and you shouldn’t share these credentials with anyone you don’t know. 

You should also carefully examine links and emails in any correspondence you receive, whether it’s by email or text. “Scammers use slight differences to trick your eye and gain your trust,” the FBI notes. Coinbase, similarly, advises users to “hover” over links and ensure that alt text matches the display text. Users should also carefully examine URLs for any typos, as hackers will often create webpages that differ from those of legitimate businesses by a single letter. 

Because hackers often leverage publicly available information about their targets, the FBI also warns users to be cautious about what they post on social media and other online forums. “By openly sharing things like pet names, schools you attended, family members, and your birthday,” it warns, “you can give a scammer all the information they need to guess your password or answer your security questions.”

Suing Coinbase over Phishing Theft? Contact a Crypto Attorney Today

Did hackers use a phishing scam to steal cryptocurrency from your Coinbase accounts? If so, you may have recovery options. The crypto attorneys[6] at MDF Law can help you navigate the complex pre-dispute resolution and arbitration processes. In addition to taking cases on contingency—clients only pay a fee if they recover lost funds—we offer free consultations nationwide. Contact our law firm at 800-767-8040 to speak with an attorney today.