Key Takeaways: Coinbase Text Scam Protection 💡
• Will Coinbase ever text me asking for codes? Absolutely not. Coinbase will never ask for your password, 2FA codes, or for you to transfer assets to a specific or new address, account, vault, or wallet.
• What should I do if I get a suspicious Coinbase text? Never click a link in a text from someone you don’t know, don’t call the number in the message, and always go directly to the Coinbase app or website to check your account.
• Can scammers really bypass two-factor authentication? Yes. Attackers wait in real-time for you to enter your 2FA code into their fake website, then immediately use it to log into your legitimate account and transfer your cryptocurrency.
• Is my stolen crypto recoverable? For victims of a Coinbase text scam, the chances of getting crypto back are slim to none—unlike traditional finance, there’s no safety net, no chargebacks, and little insurance coverage.
• How do I report a Coinbase scam text? Report it to the FTC and to Coinbase, and forward scam texts to 7726 to alert your mobile carrier.
• What authentication method should I use? Switch from text authentication to using an authenticator app or hardware key—SMS authentication is the weakest form of protection.
🚨 1. Yes, the 2025 Coinbase Breach Made These Scams Exponentially More Dangerous
This isn’t hypothetical fear-mongering. On May 11, 2025, Coinbase received an email communication from an unknown threat actor claiming to have obtained information about certain Coinbase customer accounts as well as internal Coinbase documentation. The threat actor obtained this information by paying multiple contractors or employees working in support roles outside the United States to collect information from internal Coinbase systems.
According to court filings, an employee named Ashita Mishra at TaskUs’s Indore office in India began stealing sensitive customer data in September 2024, allegedly photographing up to 200 customer records per day including names, emails, addresses, bank account details, balances, and even Social Security numbers. The stolen information was sold to hackers for $200 per image, who then used it to impersonate Coinbase employees and defraud users.
A data breach filing with the Maine Attorney General’s office indicates that the breach occurred on December 26, 2024, but wasn’t detected until nearly six months later on May 11, 2025. Coinbase reported in its SEC filing that it anticipates suffering a hit of $180 to $400 million in remediation costs and reimbursements.
| Breach Details | Impact | 💡 What This Means for You |
|---|---|---|
| 69,461 customer accounts affected | Names, SSN, bank details exposed | Scammers can personalize attacks with your real information 😰 |
| Insider employees bribed by criminals | Data sold for $200 per customer record | Your account details may already be in criminal hands 🔓 |
| $180-$400 million estimated damages | Largest social engineering crypto breach | Heightened vigilance required for all Coinbase users ⚠️ |
💡 Pro Tip: If your data was accessed, you should have received an email from [email protected]—all notifications went out at 7:20 a.m. ET on May 15, 2025, to affected customers. Check your email archive if you’re unsure whether you were impacted.
📱 2. The Anatomy of a Coinbase Text Scam: How Criminals Empty Your Wallet in Minutes
Understanding exactly how these attacks work is your first line of defense. A scammer sends a text that looks like a Coinbase alert, which may say someone is trying to access your account or that a withdrawal is in process, and it includes a phone number to call or a link to tap.
The fraudulent message often includes a reference number and an OTP code, creating a sense of urgency to trick users into sharing sensitive information or contacting scammers directly. For example, a recent message read: “(COINBASE) The OTP code for your withdrawal is 736191. If this was not you please call us on +1 (877) 338-9228. Ref CB97405.”
Here’s where the trap snaps shut: Once you engage, you’ll be asked to verify your identity or share a one-time code. That code is your two-factor authentication, and once the scammer has it, they can log in and transfer your crypto elsewhere.
If they enter their login credentials into the fake site, they are sent to the attacker in real time. On the other end, the attacker will enter in the login credentials into the legitimate Coinbase website that will send a 2-factor authentication notification with a code to the user’s inbox. Thinking that the notification was initiated by them, the user will enter the provided code into the fake website, and the code is sent to the attacker where it is entered on the legitimate website.
| Scam Phase | What Happens | 💡 Red Flag to Watch |
|---|---|---|
| Initial contact | Text claims suspicious activity or withdrawal | Any unsolicited text with withdrawal codes 📩 |
| Urgency creation | Message demands immediate action | Pressure to act without thinking 🏃 |
| Credential harvest | Fake login page captures your information | Website URL doesn’t match coinbase.com exactly 🔍 |
| 2FA bypass | Attacker uses your code in real-time | Being asked to enter codes on unfamiliar sites 🚫 |
| Account drain | Crypto transferred to untraceable wallets | Funds disappear within minutes 💸 |
💡 Pro Tip: Sophisticated scams won’t stop at a single call or message—you may get a text warning of suspicious activity, followed by a phone call, then an email to “confirm” it all. These multi-channel attacks are meant to feel coordinated, which is exactly why they are so effective.
🔐 3. Why Your Two-Factor Authentication Isn’t Actually Protecting You
This is the harsh reality most crypto holders don’t understand until it’s too late. Coinbase acknowledged a multi-factor authentication flaw that allowed hackers to receive an SMS-based two-factor authentication token required to retrieve user accounts, stating “for customers who use SMS texts for two-factor authentication, the third party took advantage of a flaw in Coinbase’s SMS Account Recovery process.”
“This once again and further drives home the fact that SMS-based two-factor authentication is fundamentally insecure and should not be considered a best practice,” says Chris Clements, VP of Solutions Architecture.
The problem is timing. Once the user enters the 2FA code into the fake website, the attacker immediately receives it and logs into the legitimate account, thus gaining account control. Once the threat actor has access, he or she proceeds to divert the user’s funds to a network of accounts via a multitude of transactions in an effort to evade detection.
One victim described the devastating speed: “I never fall for phishing attacks, always sign in directly from my favorites bar, never belonged to any social media groups, and my Coinbase account was still drained $24,717.99 with 283 transactions in just an hour.”
| Authentication Type | Security Level | 💡 Expert Recommendation |
|---|---|---|
| SMS text codes | Weakest—easily intercepted | Upgrade immediately—attackers can capture these in real-time ❌ |
| Authenticator apps (Google, Authy) | Moderate—device-specific | Much safer than SMS—use for all crypto accounts ✅ |
| Hardware security keys (YubiKey) | Strongest available | Best protection—physical device required for access 🔑 |
💡 Pro Tip: Add time-based one time password (TOTP) such as Google Authenticator as your 2FA method to both your Coinbase and email accounts. Phone numbers can be ported and stolen.
💰 4. The Staggering Financial Reality: Billions Lost and Almost None Recovered
The numbers reveal an epidemic that most people dramatically underestimate. Consumers reported losing more money to investment scams—$5.7 billion—than any other category in 2024, representing a 24% increase over 2023. In 2024, consumers reported losing more money to scams where they paid with bank transfers or cryptocurrency than all other payment methods combined.
Overall losses to text scams alone hit $470 million in 2024. The FBI said fraudsters in 2025 bilked Americans out of more than $333 million with ruses perpetrated using bitcoin ATM machines alone, a marked uptick over previous years as the popularity of cryptocurrencies continues to grow.
Consumers reported losing $12.5 billion to scams in 2024. However, law enforcement agencies believe that only 2 to 6.7 percent of victims report their losses. After accounting for underreporting, the Federal Trade Commission estimated that in just one year, Americans lost $196 billion to scammers.
According to FBI reports, nearly 50% of crypto scams start with a phishing message, and the average loss per victim is around $10,000 to $15,000.
| Scam Category | 2024-2025 Losses | 💡 Age Group Most Affected |
|---|---|---|
| Investment scams overall | $5.7 billion | Ages 60-69 lost the most total dollars 📊 |
| Bitcoin ATM fraud | $333.5 million (through Nov 2025) | Adults over 60 three times more likely to lose 👴 |
| Text message scams | $470 million | Younger adults report more often, seniors lose more per incident 📱 |
| Cryptocurrency fraud total | $9.3 billion annually | 15% of crypto investors found their investment was a scam 💔 |
💡 Pro Tip: Prevention is the only real power consumers have in this space. In crypto, vigilance isn’t just a recommendation—it’s survival. Scammers move faster than regulators, which means your strongest defense is skepticism, secure habits, and a refusal to click on suspicious links.
🎭 5. The Psychological Warfare Behind Why Smart People Fall for These Scams
These aren’t poorly written Nigerian prince emails. Modern crypto scammers employ sophisticated psychological manipulation that can fool even security-conscious individuals. Most people don’t realize they’ve been scammed until their crypto has already left their wallet. The message may have felt a bit off, but the caller knew your name, had details about your account, and sounded calm but urgent.
Blockchain investigator ZachXBT reported a table showing $65 million stolen from users between December 2024 and January 2025. He also said the real losses could be higher, as his data only came from his direct messages about onchain thefts and excluded Coinbase support tickets and police reports he couldn’t access.
For many Coinbase users, the typical approach scammers took looked like this: A warning in text or email alerting them to “suspicious activity” on their account. Moments later, they received a call from a number that looked local and legit. The voice on the other end says they are from Coinbase and here to help. They then walked victims through a “secure transfer” to protect their funds—essentially transferring their crypto to accounts the scammers controlled.
Unlike typical state-sponsored cyberattackers from Russia or North Korea, the perpetrators are not the usual suspects. This time, the threat actor appears to be a ragtag group of teenagers and young adults operating under aliases like “Puffy Party” on Telegram.
| Psychological Tactic | How It Works | 💡 Your Defense |
|---|---|---|
| Urgency and fear | Claims your account is under attack right now | Pause—legitimate companies give you time to verify 🧘 |
| Authority impersonation | Scammers know your real details from data breaches | Having your info doesn’t prove legitimacy—verify independently ✋ |
| Helpful demeanor | Caller sounds professional and genuinely concerned | Real Coinbase support never makes unsolicited calls 📵 |
| Technical jargon | Uses real-sounding terms to seem credible | Ask yourself: did I initiate this contact? 🤔 |
💡 Pro Tip: Customers should remain vigilant against social engineering attacks and be wary of any unsolicited communications, regardless of the apparent sender or platform—email, phone calls, text messages, or social media—that request personal information, demand urgent fund transfers, or direct you to suspicious websites.
🛡️ 6. Your Complete Defense Protocol: The Seven Steps That Actually Protect Your Crypto
Coinbase will never call or text you to give you a new seed phrase or wallet address to move your funds to. If you receive this call, hang up the phone. Coinbase will never ask you to contact an unknown number to reach us.
Here’s your actionable protection checklist:
First, turn on withdrawal allow-listing. Only allow on-chain transfers to wallets that you know and trust.
Second, enable strong 2-factor authentication. Hardware keys are best.
Third, lock first, ask later. If something feels off, lock your account in-app and email [email protected].
Fourth, do not call any phone number you find online claiming to be Coinbase Support that is different from the one on their website. These are cyber-criminals trying to steal your digital currency.
Fifth, do not allow remote access to your computer from someone claiming to be from Coinbase Support. Coinbase Support will never ask to remotely take over your computer.
Sixth, verify directly by checking your account status through the official Coinbase website or app—do not use links or numbers from the message.
Seventh, enable Two-Factor Authentication using an authenticator app instead of SMS to secure your accounts.
| Protection Layer | Implementation | 💡 Why It Matters |
|---|---|---|
| Withdrawal allowlist | Whitelist only wallets you control | Prevents transfers to unknown addresses even if account is compromised 🔒 |
| Hardware 2FA key | Purchase YubiKey or similar device | Physical possession required—can’t be phished remotely 🗝️ |
| Account lock capability | Know how to freeze instantly | Buys you time if you suspect compromise ⏱️ |
| Official contact only | Bookmark coinbase.com directly | Eliminates risk from fake phone numbers and URLs 📌 |
| Email security | Use unique strong password, enable 2FA | Email access = account access for attackers 📧 |
❓ What Should I Do If I Already Clicked a Scam Link or Shared Information?
Time is critical—every second counts. Immediately change your Coinbase and email passwords, reset 2FA, and report the scam to Coinbase support.
Change your passwords and update Coinbase and all connected accounts. Enable stronger 2FA by switching from text authentication to using an authenticator app or hardware key. Report the crime by filing with the FTC, the FBI’s Internet Crime Complaint Center (IC3), and local police. If a SIM swap is suspected, alert your phone carrier immediately. Preserve evidence by saving all texts, emails, and transaction records.
Coinbase will voluntarily reimburse retail customers who mistakenly sent funds to the scammer as a direct result of this incident prior to the date of their May 2025 blog post, following a review to confirm the facts.
| Timeframe | Critical Action | 💡 Expected Outcome |
|---|---|---|
| First 5 minutes | Lock account via app, change all passwords | May prevent further unauthorized access 🏃 |
| Within 1 hour | Contact Coinbase support through official channels | Document the incident, begin investigation 📋 |
| Same day | File reports with IC3, FTC, local police | Creates official record, aids broader enforcement 👮 |
| Ongoing | Monitor credit reports, bank statements | Catches identity theft attempts early 👁️ |
❓ Can I Trust Any Text or Call That Appears to Come From Coinbase?
The short answer: approach everything with suspicion. Coinbase phone support does not make outgoing calls. Scammers may spoof the caller ID of Coinbase’s real support phone number and call you directly with what appears to be our legitimate number. If someone calls you claiming to be from Coinbase Support, even if it’s from our legitimate number, they are spoofing the phone number and are trying to scam you.
It is unfortunately common that a fraudster claiming to be from Coinbase would know some of your information, but this is not evidence that he or she is legitimate.
Coinbase, like most financial institutions or FinTech companies, will never contact you asking for your password, two-factor authentication codes, or to take actions like installing new software or sending funds to a cryptocurrency address.
Final Word: Your Crypto Security Depends on Understanding This One Truth
In crypto, vigilance isn’t just a recommendation—it’s survival. The breach has happened. The scammers have data. Threat actors leveraged the stolen data to execute social engineering attacks in an attempt to steal cryptocurrency from Coinbase customers.
Most importantly, Coinbase (or any other institution or platform) will never ask you for passwords, 2FA codes, seed phrases, or transfers to a “safe wallet.” If someone acting as support ever asks this of you, hang up or close the email immediately.
If your cryptocurrency is stolen, there is no source to go to in order to recover it, and no insurance or other protection against the loss. Law enforcement typically won’t work the case unless millions of dollars are at stake. A successful compromise of a crypto account can be devastating for the victim.
The scammers are counting on you to panic, to react emotionally, to trust the voice on the other end of the phone. Your defense is deliberate skepticism, verified contact methods, and the discipline to pause when everything screams urgency. If you have been a victim of a phone support scam, report the theft to Coinbase Support and to the FBI Internet Crime Complaint Center.
Your cryptocurrency security ultimately rests in your hands. No exchange, no authentication method, and no security team can protect you from your own decisions in a moment of panic. Stay vigilant, verify everything independently, and remember that the best protection is never clicking, calling, or responding to anything you didn’t initiate yourself.