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Report Identifies Coinbase as the Most Impersonated Crypto Brand by Scammers

ByDayne Lee

Jun 26, 2024

Report Identifies Coinbase as the Most Impersonated Crypto Brand by Scammers

In the evolving landscape of Web3 security, a recent survey has revealed that the Coinbase cryptocurrency exchange is the most frequently impersonated brand by scammers within the sector. This alarming trend highlights the persistent challenges and risks faced by major crypto firms and their users.

Scope of Phishing Attacks on Coinbase

According to a detailed analysis by Mailsuite, shared with Cointelegraph, Coinbase topped the list among U.S. crypto firms for being the target of phishing scams. These attacks, which deceive users into sending digital assets to fraudulent wallets, have reportedly involved the Coinbase brand in 416 incidents over the last four years.

The Mailsuite report, encompassing over 1.14 million scams, found that approximately 249,000 of these incidents impersonated companies or organizations. This method of fraud remains a prevalent tactic among cybercriminals looking to exploit the credibility of established entities.

Coinbase’s Market Position and Trust Score

As the world’s second-largest centralized cryptocurrency exchange (CEX), Coinbase boasts significant trading volumes, exceeding $1.8 billion daily, according to CoinMarketCap. The platform is highly trusted in the community, receiving a perfect trust score of 10/10 and attracting over 40.9 million visits monthly, as per CoinGecko.

While Coinbase leads among crypto firms for impersonation incidents, the issue extends well beyond the cryptocurrency industry. Traditional finance and technology brands also suffer from high rates of impersonation:

  • Bank of America faced 645 phishing attempts.
  • Mastercard was targeted in 1,262 attempts.
  • Meta, the parent company of Facebook, emerged as the most impersonated non-crypto brand with 10,457 incidents.
  • The U.S. Internal Revenue Service was impersonated in 9,762 scams.

Crypto Scams and Security Concerns

Despite the crypto industry’s maturation, scams and exploits continue to plague the sector:

  • Nearly $19 billion in crypto assets has been stolen over the past 13 years in 785 reported incidents, according to Crystal Intelligence.
  • The largest theft involved the Plus Token scheme in 2019, where scammers stole $2.9 billion worth of Bitcoin and Ether.
  • The first quarter of 2024 saw a significant increase in stolen funds, totaling $542.7 million, marking a 42% rise from the same period in 2023.
BrandNumber of Phishing AttemptsSector
Bank of America645Finance
U.S. IRS9,762Government

The surge in crypto thefts and hacks poses significant barriers to the mainstream acceptance and trust of cryptocurrency technologies. As scammers continue to refine their strategies, the imperative for robust security measures and vigilant regulatory oversight becomes more pronounced.

The consistent impersonation of high-profile brands like Coinbase underscores the ongoing vulnerabilities within the digital asset industry. For stakeholders and users alike, enhancing security protocols and educating about the risks are vital steps towards safeguarding investments and maintaining trust in the crypto ecosystem.

Featured image credit: Crypto Dost via Flickr

Dayne Lee

With a foundation in financial day trading, I transitioned to my current role as an editor, where I prioritize accuracy and reader engagement in our content. I excel in collaborating with writers to ensure top-quality news coverage. This shift from finance to journalism has been both challenging and rewarding, driving my commitment to editorial excellence.

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