Coinbase is the most impersonated brand in the cryptocurrency sector, Cointelegraph reported, citing a recent study. Phishing attacks, which trick investors into sending digital assets to scammers, predominantly target Coinbase among US crypto firms. Over the past four years, 416 phishing attacks using the Coinbase brand have been reported.

Growing Threat of Impersonation Scams

Some of the tactics scammers use include sending emails purported to be legitimate communication from the cryptocurrency exchange. Such emails are sometimes part of a phishing scheme, a tactic that has made Coinbase the most impersonated brand in the crypto industry.

This revelation is part of a broader report highlighting the rampant impersonation of major brands by scammers, targeting unsuspecting victims in the digital finance world. The Mailsuite report, which analyzed over 1.14 million scams, revealed that 249,000 incidents involved attackers impersonating a company.

Among these, Coinbase stood out due to its high profile in the cryptocurrency market. With over $1.8 billion in daily trading volume and a 10/10 trust score, Coinbase's popularity makes it an attractive target for scammers.

While Coinbase leads in the crypto sector, traditional finance, and tech giants are not immune to these threats. Meta, Facebook's parent company, was impersonated in at least 10,457 reported scams over the past four years, making it the most targeted non-crypto brand. Following Meta, the US Internal Revenue Service was impersonated in 9,762 scams.

Enhancing Security Protocols

Scammers often use sophisticated techniques to mimic legitimate communications, making it crucial for users to verify the authenticity of any unsolicited requests for personal or financial information. Both Coinbase and Meta face significant challenges in combating these impersonation scams. Efforts to educate users, enhance security protocols, and swiftly address reported incidents are ongoing.

A recent study by Finance Magnates and FXStreet corroborates the heightened increase in scams. It revealed that as many as 38% of traders who lost funds mostly encountered clone brokers and signal providers, as compared to any other type of scam. 631 traders participated in the survey, sharing their experiences with online scams.

Following the clones of legitimate platforms, investment and Ponzi schemes were the other key areas targeted by scammers to lure their victims. About 35% of the traders who lost funds encountered such scams. When it comes to phishing emails or messages, 19% of the traders who lost funds encountered such scams, while 8% fell victim to fake news.