Ripple CTO Flags Subtle Coinbase-Linked Scam Move

A malicious actor is targeting Coinbase users with fake support email as flagged by Ripple CTO.

Key Notes

Ripple CTO has cautioned users that a malicious scammer is targeting Coinbase users.He shared a fake email targeting the users.Coinbase and industry firms often guard against related thefts.

David Schwartz spotted an elaborate phishing scam on the American cryptocurrency exchange Coinbase Global Inc (NASDAQ: COIN) and immediately took to X to notify users. According to the Ripple Labs Chief Technical Officer, the bad actor is trying to infiltrate Coinbase users through SMS and email. He shared a screenshot of a mail he received from a supposed Coinbase Asset Shielding department.

Coinbase Scammers Attempt to Gain Trust from Users

The sender of this email posed as a representative of the San Francisco-based crypto exchange Coinbase, claiming to be investigating a case. Before sending this message, the scammer called its targets to inform them of an ongoing investigation. Afterward, he sent either an SMS or an email requesting confirmation of the call they received earlier and some other details.

Yet another elaborate scam attempt today using both SMS and email. This is a scam. Do not fall for it. pic.twitter.com/Bb7EVDhIOb

— David "JoelKatz" Schwartz (@JoelKatz) October 4, 2024

To substantiate his claim and make Coinbase users believe they were on a call with a representative, the sender included the contact number, case ID, and official’s name in his follow-up message. The message is curated to look legitimate, and unsuspecting users may need help deciphering that it is a scam.

However, a more cautious look will help users discover that the email was sent from an unofficial domain. This is not a common move that an organization like Coinbase will pull on its users. When scammers leverage this fraudulent strategy for their target, they try to retrieve sensitive user information. They attempt to establish trust with the victims to ensure their cover stays intact.

Schwartz issued a clear warning to his followers, asking them to avoid falling for the scam. The Ripple executive is constantly looking for ways to safeguard crypto users from the shackles of malicious actors. He once warned the XRP community of the rising occurrences of scams in their ecosystem. At the time, Judge Analisa Torres had just ruled that XRP is not security. Therefore, there was a general market hype around the crypto asset.

“A lot of scammers are taking advantage of the recent good news to try to cheat and steal. There are no airdrops, giveaways, or special offers associated with this ruling,” Ripple CTO informed the community.

Coinbase Joins Initiative against Scams and Hacks

Less than five months ago, Coinbase joined top crypto and finance firms to form the Tech Against Scam coalition.

Meta Platforms Inc (NASDAQ: META), Match Group, Kraken, Ripple, Gemini, and GASO were the other firms involved in this development. They all have a shared mission to tackle the rising issue of scams and fraudulent activities that have plagued the online sector.

The group decided that one way of handling the prevailing fraudulent activities is to educate users about common scamming tactics and how to avoid them. They are keen on equipping users with the knowledge and tools to protect them from these bad actors.

The schemes to guard against include fake investment schemes, deceptive social media tactics, or malicious activities on dating apps.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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