Have a Coinbase account? Did you end up losing your funds? Don’t feel bad- this happens every day to tons of Coinbase users. Unfortunately, the cryptocurrency space is plagued by fraud, theft, and scams. Most major crypto platforms have all suffered significant hacks.
First off– if you believe your account has been compromised, follow these steps immediately.
The query ‘Will Coinbase refund if hacked?’ is searched on Google thousands of times every month.
Here’s the good news up front: Coinbase secures the majority of its digital assets with crime insurance, and will refund you if your account has been compromised. Even if your funds were lost due to negligence or personal error, they might still refund your account.
Coinbase takes great strides to protect its users and has a process in place for refunding its users if their digital assets are stolen.
Maybe those super high fees on Coinbase are worth it after all if they help the exchange pay for crime insurance on your Coinbase account.
How do people get hacked?
The most common crime in the crypto space is a phishing attack. Phishing attacks are the most prolific form of cybercrime, and all it takes to fall prey to one is clicking a bad link sent to you in an email or text.
Your account is compromised, since hackers take control of your computer/phone and gain access to your Coinbase account.
Coinbase customers report suspicious activity like getting text messages for 2FA codes when they aren’t trying to sign on, followed by an unauthorized or incorrect transaction. Unauthorized transactions are what happen when hackers send your funds from your Coinbase account to theirs.
Check your email account, too
It’s likely that hackers have hijacked your email account if it’s a phishing attack. Try logging in to your email. If it’s not working, contact your email provider (I.e. Gmail), and have your email provider do a reset on your account.
Reset your email password if an email breach happens. Resetting your email password is fast and easy to do, and a huge step toward stopping the hacker in their tracks.
Wrong crypto address
Another common mistake people report is sending money or cryptocurrency to the wrong recipient address. While this technically isn’t a ‘hack’, it still results in a loss of funds. Another form of
Coinbase refers to sending funds to the wrong account a ‘unauthorized or incorrect transaction.’
The last and least common security breach is a major hack. Coinbase holds billions in cryptocurrency assets. Obviously there’s enormous incentive for bad actors to commit cybersecurity breaches and gain access to the huge amount of cryptocurrency funds held on exchanges.
These hacks occur once every couple of years and usually ‘only’ affect a few thousand users. Coinbase automatically refunds any account involved. Chances are low that you lost funds in a hack.
What about my bank account?
If someone has taken control of your Coinbase account, it is possible that they could send funds from your bank account to your Coinbase account, and then send crypto to their wallet. If this has been the case, you’ll need to provide Coinbase with a bank statement showing these illegal withdrawals.
How do people get refunded?
Notifying Coinbase can be done by filling out a customer support form. Select Coinbase or Coinbase Pro. On the support form, select the account comprised and unauthorized accounts option. You can also request a temporarily disable of your account on the same form.
Wait & answer questions
After notifying the team of the hack, customer support will open a case (or support ticket) for your instance. A small team inside the company reviews all of these cases, so this is the part that ends up taking the most time, up to a month in some cases.
If the team emails you back with any questions about you or your account, be sure to follow up promptly with the team.
Get a result (and hopefully a refund!)
The customer support team contact you and will decide if fault for the event was with them or you. If you fell prey to a phishing attack, you’ll likely be fully refunded.
Coinbase is a force of nature (or instead, capitalism)
Coinbase is one of the most popular crypto exchanges.
If cryptocurrency exchanges were smartphones, Coinbase would be the iPhone, Binance would be the Samsung Galaxy, and KuCoin would be the Xiaomi. Coinbase has the reputation of being the top brand and the safest.
Why? Because Coinbase is an American company, it’s fully regulated by American law. Additionally, Coinbase is regulated by the Securities and Exchange Commission (SEC) since it’s publicly traded on the NASDAQ.
Being publicly traded puts Coinbase up to harsh criticism about anything and everything, including its customer service. Lucky for us, Coinbase has upped its customer service game since going public in October of 2021.
As of late 2022, Coinbase has a userbase of 98 million- that’s roughly the population of Vietnam or Egypt. I feel that when the next bull run happens in a couple of years, this figure could exceed half a billion.
Get a hardware wallet, get 2FA
Don’t wanna get your accounts hacked again? Up your security game. For one, store your assets on a hardware wallet. If you don’t have two-factor authentication set up on all your crypto accounts, please do so immediately.
Get someone on the phone
This is how I like to do business. In most cases, a phone call is always faster. Coinbase’s customer support is available via phone 24 hours a day, seven days a week.