Coinbase is under fire from users who have reported abrupt account restrictions and delays in support. The exchange is defending its fraud prevention measures in the face of a surge in fraudulent activity.
Coinbase has recently garnered attention for two noteworthy developments: the commemoration of its 100th perpetual futures contract listing on Coinbase International and the increasing apprehensions regarding account security and support on its primary platform. Reports of fraudulent activity and account restrictions have raised concerns regarding Coinbase’s customer experience and security measures, despite the international exchange’s expansion of its offerings with new listings, such as Algorand and Moo Deng.
Coinbase was the subject of scrutiny over the weekend as a number of users reported abrupt account restrictions on the platform. Customers who were dissatisfied sought clarification on social media platforms, particularly X, when complaints began to pour in. In response, Coinbase’s @CoinbaseSupport account addressed the issue in a succession of posts, advising users to exercise caution and forbearance. The account emphasized, “Please be patient and do not blindly believe everything you see on Twitter.”
In conjunction with reports of an increase in phishing attacks and fraudulent schemes that target Coinbase users, there has been a recent surge in complaints. On Saturday evening, @pcaversaccio, a security researcher and member of the SEAL 911 team, disclosed startling information regarding a series of account compromises. “He posted on X yesterday that skiddies (again) decided to spoof Coinbase support and depleted multiple accounts.”
Skiddies, which stands for “script kiddies,” are hackers who are inexperienced and rely on pre-written scripts to implement cyber exploits, rather than developing their own tools. These opportunistic assailants have been increasingly focusing on digital asset platforms, employing deceptive methods to deceive unsuspecting users into disclosing sensitive information.
Coinbase acknowledged the increased activity in its thread on X, attributing it in part to a substantial influx of new and returning users following the election. “We have observed a 2-3x increase in fraudulent attempts in conjunction with this surge, as is customary during surges,” the @CoinbaseSupport account stated. Coinbase emphasized the efficacy of its fraud-prevention systems, asserting that they had prevented “tens of millions in losses in November alone,” despite these obstacles.
Nevertheless, Coinbase’s endeavors to address fraudulent activities have not been without criticism. The exchange’s dependence on draconian account security measures has been the subject of complaints from users and security experts, who contend that they are excessively sensitive and susceptible to false positives.
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