Consumer complaint received 2021-10-25 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Fraud or scam — 
Company: Coinbase, Inc.
State: PA

Complaint narrative:
I opened a Coinbase.com account on XX/XX/XXXX and purchased {$9000.00} worth of crypto currency and another {$1000.00} on XX/XX/XXXX. On the morning of XX/XX/XXXX my Coinbase, XXXX, and XXXX email accounts were all fraudulently accessed and compromised at approximately XXXX EST. I checked my phone approximately XXXX and had text alerts from both Coinbase ( XXXX ) and XXXX that my passwords had been changed and an email from XXXX alerting me that my email account was accessed by someone from XXXX. The following is the chain of events that transpired on the morning of XX/XX/XXXX : - Approximately XXXX I contacted Coinbase to freeze my account. They were unable to provide me any information on my account. I was unable to reset my password because I was not receiving emails from Coinbase in my XXXX account. Coinbase provides no phone support and only processes account reset via email. The text alert I received from Coinbase was at XXXX notifying me that my password had been changed. 
- Immediately after contacting Coinbase I contacted XXXX from my landline because I had no service on my mobile phone. XXXX informed me that my password had been changed and they had changed my SIM card. This allowed the fraud to respond to any alert from Coinbase. 
- I changed the passwords to all my accounts and searched my XXXX account and found the frauds had set a filter blocking any email from coinbase.com - I opened a case with Coinbase ( # XXXX ) using another email- I began the password reset and account access process with Coinbase. Upon waiting approximately 48 hours I was finally able to access my account and determine all my funds were stolen. 
- Between XXXX PST on XX/XX/XXXX the frauds processed 129 transactions sending funds to an account I am not associated with. There are log records to show this activity. 
- Through multiple emails Coinbase informed me they do not attempt to recover funds or reimburse fraudulent activity despite allowing the frauds to chanege both my password and multi-factor authentication - Filed a complaint with Coinbase ( # XXXX ) on XX/XX/XXXX - Filed a police report with the Florida XXXX XXXX XXXX Sheriffs Office ( # XXXX ) on XX/XX/XXXX - Filed a complaint with the OCC XX/XX/XXXX I believe Coinbase negligence and lack of fraud controls is what allowed the fraud to occur on my account. The activity on my account had multiple fraud indicators and Coinbase did nothing to delay or prevent the movement of funds from my account. Individually, each transaction would be considered high-risk. However, taken collectively it was a clear indication of fraud whereas if Coinbase had any detection strategies the activity would have been detected and my loss prevented. The fraud triggers included : - Change of password and multi-factor authentication at XXXX EST - Immediate movement of funds after password change - 129 separate transactions within 20 minutes immediately after a password change with no history of any sale or movement of funds - Funds sent to account not on file and not used for funding the account and had no personally identifiable information relating to me on file As someone who has spent nearly 30 years in bank fraud there are tools available to detect and prevent this type of activity. There are also tools to ensure sending and receiving client information matches. Coinbase was negligent in providing any detection and prevention of fraud costing me what is currently over {$15000.00}. Additionally, their total lack of accountability for their negligence in refusing to reimburse my losses is indicative of their mismanagement from the executive level on down as to how they secure their environment and protect their customers information.

Company response to consumer: Closed with explanation