Consumer complaint received 2021-10-25
Company: Coinbase, Inc.
State: IL
Product: Money transfer, virtual currency, or money service
Sub-product: Virtual currency
Issue: Other transaction problem

Complaint:
On XX/XX/2021, my Coinbase account was hacked using my phone number 's XXXX. 
My first indication was that my phone no longer had service. I contacted my carrier and they stated that someone had called to have my number switched to a XXXX phone. Once I got on my computer, I saw tons of emails from Coinbase that my account balance was being converted to Bitcoin and transferring out to numerous wallets. There was also an attempt to transfer {$1000.00} USD from my bank account.

On the automated emails from Coinbase, there was an option to " freeze account '' if I did not authorize these transactions. I clicked the " freeze account '' button and also immediately emailed their customer support regarding the issue. Then I called my bank to advise about the fraudulent money transfer and to freeze my accounts/ credit cards.

My bank and phone carrier instantly took care of the issue while Coinbase sent me through loops while providing no customer support.

Coinbase claimed to have my account frozen while asking me for photos of my identification cards, photos of myself etc. to verify my identity. 

My bank immediately froze all my accounts and my phone provider recovered my number within 48 hours. After more than a week, Coinbase was still providing me zero help. When I was finally able to gain access to my Coinbase account, I saw that all of my cryptocurrency had been drained ( approx. {$300.00} ).

After over a week dealing with Coinbase and their lack of support, I realized that they had not frozen my account after I quickly clicked on the link on the unauthorized transfers email and sent notice to their customer support email. Not a single phone call was answered from their support line and it only stated a message that I should submit a ticket, which I had and was getting no help. 

They were quick to send a separate email ( aside from the customer support ticket email ) that I owed {$1000.00} since the hacker tried to transfer funds from my bank. These were the funds that my bank quickly flagged as fraudulent and notified me. 
Within days I received an automated message that my account is in " recovery mode '' for the {$1000.00} they claim I now owe their company. It is stated that this will take place by draining any cryptocurrency I am associated with. 

I emailed them from the beginning that I wanted Coinbase to close my account. There was not much money so I was willing to take the loss so that my other identification information could no longer be leaked/ accessed. They still refuse to close my account and say I owe money.

After looking online for guidance, I realized that this seems to be an all too familiar scheme involving Coinbase. Whether it is internal or not, it is evident they are doing nothing to prevent the breach of security. There is no hold on funds even after clicking on their automated emails that the transaction is unauthorized. They do not freeze the account like the other financial institutions did instantly for me.

There was not much in my account to begin with, so I am not upset about losing {$300.00} from my Coinbase account. What is upsetting is their complete disregard with security since they are handling currency and using this as an attempt to take additional funds. 

I am reporting this incident with Coinbase because of their lack of help for customers and because it does not seem to be a coincidence that so many other users have an identical story. It starts with a number porting scheme, we send the request and they take no action to freeze the account. Coinbase continues allowing crypto transfers THEN says the customer owes {$1000.00} to gain access back to their Coinbase account.

Company response to consumer: Closed with explanation