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Will Coinbase Refund You If You Get Hacked? (Full 2022 Guide!)

Jamey Muller
Updated: August 4, 2022
6 min read

Cryptocurrency platforms like Coinbase are high-value targets for cybercriminals. If you are with Coinbase, you may be wondering what happens if hackers get to your account.

Find out if Coinbase will reimburse you if you get hacked or scammed.

Here’s if Coinbase Will Refund You if You Get Hacked:

Coinbase will refund you once it is proven that your account has been hacked and funds have been stolen. It has crime insurance to protect your digital assets against losses due to theft and other cybersecurity breaches. This is part of your remuneration as a Coinbase user.

Cryptocurrency is not considered legal tender, therefore, not backed by the government. It is also not subject to the Federal Deposit Insurance Corporation (FDIC) protections and the Securities Investor Protection Corporation (SIPC).

To protect its clients from cyber fraud, Coinbase has insurance coverage for cases of system-wide breaches. However, this does not cover losses resulting from unauthorized access to individual accounts due to breaches or loss of credentials.

It is your responsibility as a Coinbase user to protect your account from hackers by using a strong password and maintaining control of all of your login credentials in accessing your Coinbase account.

In cases of security breaches covered by the insurance, Coinbase will refund your lost funds. However, if the total losses exceed the insurance recoveries, you will still end up losing money.

What Should You Do if Your Coinbase Account Gets Hacked?

You should immediately reach out to the Coinbase customer service if you believe that your account has been hacked.

There are three ways to contact the Coinbase support – online, through the mobile app, and by dialing the hotline.

If you want to speak with a live agent, you should call 1-888-908-7930. This is Coinbase’s toll-free phone number and is available 24/7.

Make sure to explain to the Coinbase representative that you believe you have been hacked and you want to verify if the hack has indeed happened.

You should also expressly indicate that you want to begin the investigation and confirmation process so you can get back your lost funds as soon as possible.

Coinbase's support team will walk you through the step-by-step process. They will ask you to confirm your account, then run through standard security protocols.

Your case may be forwarded to the Coinbase’s security department, where experts will be involved to verify if the hacking indeed took place. They will also help you better secure your account.

You may also report the incident online. Go to your Coinbase account and indicate Account Compromised and Unauthorized Accounts under the topic you need help with.

Continue clicking on the most applicable options for your case, then fill out the rest of the form.

If you prefer, you may also ask the Coinbase support to temporarily disable your account.

How Do Coinbase Accounts Get Hacked?

The hacking of Coinbase accounts is often the result of the user's negligence or personal error rather than security flaws in the platform.

Criminals often target individual accounts which they can access due to weak or stolen credentials.

Phishing attacks are common in crypto platforms, where hackers try to find ways to convince you to give your account credentials, password, and other identifying information that gives them control over your account.

Phishing allows cyber criminals to exploit Coinbase’s two-factor authentication process without having to use brute force. 

Hackers often use an email or a text image that appears to be from Coinbase. The links will direct you to malicious websites that mimic the authentic site.

Victims are tricked to supply their login credentials and other sensitive information.

Once the hacker accessed the account, they can change that account’s credentials or transfer the holdings to another account.

Another way Coinbase accounts get hacked is through technical support and impersonation scams. 

Hackers set up bogus customer support phone lines and victimize users looking for assistance. 

Giveaways scams are also rampant. Hackers will post fake messages from Coinbase promoting a giveaway, like a cryptocurrency, with links to fraudulent websites.

You should directly report to Coinbase if you believe you are being targeted by hackers or scammers. 

What Happens if Coinbase Gets Hacked?

As a publicly traded company, Coinbase has invested heavily in cyber security. Cases of system-wide hacking are scarce, but not entirely non-occurring.

Coinbase is a relatively secure platform that entails the same risk as investing in any form. If you have strong credentials, you have little to worry about.

Aside from general security protocols, Coinbase also abides by anti-money laundering and know your customer policies. Likewise, it complies with state laws and regulations, including Bank Secrecy Act.

Even if Coinbase is not insured by the FDIC and SIPC, it carries crime insurance that protects the users' digital assets from theft.

This covers cybersecurity breaches affecting the entire Coinbase platform. If this happens and you lost funds in your account, Coinbase will refund them right away.

However, if you lose holdings due to a third-party accessing your account as a result of a breach or losing credentials, the platform may or may not reimburse you.

You will need to extensively talk with Coinbase about what happened to your account for evaluation.

Does Coinbase Refund You if You Get Scammed?

Yes. If your account has been compromised due to a scam, Coinbase may still refund your account. Report it right away to Coinbase so they can take the necessary steps to get back your lost funds.

When you go to the Coinbase support page, click on the Report a Problem link located in the upper right-hand corner of the page.

You will be directed to a support form where you need to fill out the information. Explain what happened and describe your experience in detail.

Once you submit the report, it will be forwarded to the appropriate individuals within Coinbase’s support group. 

You may also send an email to security@coinbase.com to report what took place.

Coinbase often provides users with the contact information of law enforcement agencies to further assist you in scam cases. 

How Can You Prevent Getting Scammed?

You need to do your part in safeguarding your Coinbase account to prevent getting scammed. This includes securing your email address, contact number, and bank account associated with your Coinbase account.

Hackers may compromise your email so they can gain access to your Coinbase account. 

You should check if you can still sign in to your email. If your email is at risk, you need to contact your email provider to shut down your account or review your options.

If you can still access your email account, you should change your password and turn on 2-step verification (if you have not already set it up).

Scammers may attempt to block Coinbase from emailing you. If you have not received expected emails from the platform, you can do some troubleshooting.

The same precaution should be applied to your phone number. Phone-based attacks are a huge threat to accounts using SMS-based 2-step verification.

You should call your mobile service provider and ask about security measures you can enable to prevent unauthorized changes in your account. These may include a SIM lock, port freeze, or adding a PIN.

For your bank account linked to your Coinbase account, you should always update your passwords and have the 2-step verification set up for extra protection.

The two-factor authentication will give you more control over your account and help you identify if other individuals are trying to steal your details.

You may also opt to lock down your account if you believe there is a security breach. You can do this over the phone, through your mobile app, or by filling out the Coinbase online customer support form.

Locking your account is temporary. If you feel that the problem has been resolved, you can unlock it following a straightforward process.

Finally, you should use strong passwords and make sure you do not repeat any of your login credentials.

As a rule of thumb, you should never give anyone your information details. You should only contact Coinbase directly via the listed phone numbers or email.

Coinbase will never ask you to share sensitive information, including authentication credentials or security codes.

If a customer service agent inquires about your passwords, instructs you to install a particular software on your device, or tries to remotely access your device, you should be careful.

Contact Coinbase immediately and report what happened. 

Sources:

Coinbase: Legal User Agreement
Coinbase: How Is Coinbase Insured?
Coinbase: Privacy and Security

Written by
Jamey Muller
I'm the head-writer @ Knowledge Eager (or, in plain English, I'm the guy writing the majority of the content here). Addicted to the stock market, football, sushi and tacos.
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Jamey Muller
I'm the head-writer @ Knowledge Eager (or, in plain English, I'm the guy writing the majority of the content here). Addicted to the stock market, football, sushi and tacos.