Coinbase is Erratically Overcharging Some Users and Emptying Their Bank Accounts 144
A growing number of Coinbase customers are complaining that the cryptocurrency exchange withdrew unauthorized money out of their accounts. From a report: In some cases, this drained their linked bank accounts below zero, resulting in overdraft charges. In a typical anecdote posted on Reddit, one user said they purchased Bitcoin, Ether, and Litecoin for a total of $300 on February 9th. A few days later, the transactions repeated five times for a total of $1,500, even though the user had not made any more purchases. That was enough to clear out this user's bank account, they said, resulting in fees. [...] Coinbase representatives have been responding to similar complaints on Reddit for about two weeks, but the volume of complaints seems to have spiked over the last 24 hours. Similar complaints have popped up on forums and Twitter.
Crypto bubble (Score:5, Interesting)
It looks like a hack to drive up the price of Crypto. A new age pump and dump. Instead of banding with a group of friends, hack coinbase accounts to buy the coin you are trying to pump. Even if Coinbase detects it and returns the funds after a few days you have succeeded in pumping up the coin. Litecoin went up 30% yesterday while rest of the market was up 10%
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Or an attempt to get out and tack the free falling coins onto someone else before it's too late.
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A smarter scam would be to create a 'group investment pool' and allow users to opt in up to a set limit for 'automated trading based on the proprietary Coinbase AI's market analysis', and give participants a small cut of the action.
Same scam, but no complaints.
Re:Crypto bubble (Score:5, Funny)
That's probably my fault, I bought 0.3 Litecoin yesterday morning.
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Bit Con (Score:2, Funny)
Too funny.
At least you can plant a tulip and watch it grow into something beautiful.
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Bitcoin may not be tangible, but it can be traded for all kinds of great stuff that you just can't get in stores.
Re:Bit Con (Score:4, Funny)
Gonorrhea and chlamydia?
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If that's what you're into. I was thinking more like drugs, but you do you.
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Gonorrhea and chlamydia?
...but you do you.
I'm pretty sure those problems come from doing someone else.
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In the words of Frank Zappa while exploring the age-old question, "Why does it hurt when I pee?":
I got it from the toilet seat. It jumped right up 'n grabbed my meat.
At least that's what I tell my wife.
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Like what? I'm not trying to be a smart ass here but have you been able to do this with bitcoin?
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I'm not trying to be a smart ass here but have you been able to do this with bitcoin?
Are you serious? Create a Bitcoin wallet. Install the Tor browser. Search for Dream Market. Order whatever the fuck you want. Ketamine seems to be popular; there are plenty of sources for cocaine; LSD ships trivially through the mail; plenty more.
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That sure sounded like I was giving advice. Import and use illegal drugs at your own peril. When the authorities shut down 2 of the biggest dark marketplaces several months ago, they first ran one for a month.
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Bitcoin may not be tangible, but it can be traded for all kinds of great stuff that you just can't get in stores.
Are you speaking from personal experience, or is it anecdotal? I've read that you can use bitcoins to buy things, but the last time I checked those things seemed restricted to travel agency deals, VPNs, some software from the Microsoft store and mouse mats from Newegg - and the last two have been stopped.
There is a difference between "I have bought drugs with bitcoin", and "I know someone personally who has bought drugs with bitcoin but I haven't seen them" and "I read on a website that people can buy drugs
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I have witnessed the complete transaction for a sheet of LSD delivered to New Mexico from Germany. See here [slashdot.org].
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It's almost like a magical gathering of users?
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The one thing I can say to make myself feel better about not getting into Bitcoin at the start, is that I would probably have used that particular site to store them. And I would be right where I am now, holding nothing.
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You just need to follow through. Head for the seediest part of the town you live in, wrap a $100 bill around the stems and give the bundle to the woman with the shortest skirt you can find.
Hmm (Score:3, Interesting)
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For context, the item's nominal price was ~$30...
isn't the tilde the mathematical symbol for "approximately"? That might have been the problem.
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Things like this are precisely why... (Score:3)
... I set up a separate low-balance checking account just for less secure transactions. It can only get hit so hard, acting as a buffer to my household finances. I can transfer money in/out at my financial institution, but my household funds never get exposed to the world.
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... I set up a separate low-balance checking account just for less secure transactions. It can only get hit so hard, acting as a buffer to my household finances. I can transfer money in/out at my financial institution, but my household funds never get exposed to the world.
Overdraft fees will kill you in that case.
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Even if you ask that Overdraft protection be disabled on your account, they will simply charge you a insufficient funds fee. As if it costs them anything to bounce a check. All the banks run this scam, so much for the "free market"
Time for a new bank. My bank (US Bank) doesn't charge for insufficient funds (on debit card transactions at least, which is only thing I use.) They just simply refuse to process the transaction at all. Works for me. Overdraft fees are ruthless.
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But, if it turns out the charges were fraudulent, they won't charge you the fee. And the fraudsters don't get your money.
It doesn't protect you from fucking up on your own, but its better than risking all the money you have by linking your main bank account.
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But, if it turns out the charges were fraudulent, they won't charge you the fee.
Credit cards are the only way to do business online. If there is a fraudulent charge its just a number on a bill, not missing money that you have to fight to get back.
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Most credit unions DO NOT do this... Which is why all of my families accounts are with a local credit union and have been for going on 30 years. Credit unions are NOT like banks, in fact, the motto of the credit union I belong to is "The bank that *you* own"....
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Overdraft fees are a tax on the poor.
Buy Beware (Score:2)
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Always use Visa Electron or Mastercard Maestro for any internet purchases and have them linked to a separate account where you move money as needed. It cannot go negative and is handy when sites try to autorenew subscriptions and fail :)
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I tell you I keep getting whiplash with crytpo's. First they are a currency to transact purchases easily, then it is an investment, then it is back to a currency. If you are afraid to link your bank account to crypto, I guess you are back in the investment category. Next week I'll see comments pushing it as alternative to my CC/dollars.
obCasablanca (Score:5, Funny)
I am shocked, shocked that linking my bank account to some random website that deals in imaginary currency could have ill effects.
{Your pyramid scheme winnings, sir}
Thank you.
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He's not a hater. You should be really damned careful about who you give direct access to your bank account. Some crypto currency (ALL crypto currency is still in its infancy and is still sketchy as hell) should not be able to deduct from my bank account.
Linked Bank Account (Score:2)
I see your problem right here. Don't link accounts. Make payments manually (either write a check or kick off a one-time electronic payment as required). Even if a screw up is due only to some institution's screw up (not intentional and/or malicious) you have little recourse to repair damages due to mandatory arbitration clauses.
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I haven't used coinbase lately, but I believe you essentially have to link your bank account now.
All major credit cards recently blocked them, and if you want the lower fees and faster processing you need to link a bank account. Otherwise the fees are high and the wait is long. For people itching to get in while it's low (actually, it's already past $10,000 again) or trade frequently and make money off of day-to-day swings, time is of the essence.
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Implosion (Score:4, Funny)
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Since I never jumped on the crypto currency bandwagon, it is kind of fun to watch the entire crypto currency ecosystem implode.
Except the exact opposite is happening. LOL.
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BTC is down 50% from its high
That high you're using as a reference was a short-lived fluke. The price is up compared to where it was at the end of November, or any prior point. The fact that it's down sharply over the last month or so from a temporary high is only a problem if you bought in while the price was peaking. "Buy high" is not a winning strategy in general.
It's much more reasonable to judge an investment by how its current price compares to historical averages, not transient minimums or maximums.
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Crap! (Score:4, Funny)
I'd like to issue an apology for this mishap. Some accounts were incorrectly charged because browsers were using a cached version of the site. To fix this problem, flush your cache, then load the site and your bank account will be properly drained of it's funds. ;)
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(snip) flush your cash, then load the site and your bank account will be properly drained of it's funds. ;)
FIFY
Is there a way to prevent duplicate transactions? (Score:3)
Oh yeah, one of the basic functions of a blockchain :-/
What the fuck are they doing over there at CoinBase?
I had a fun coinbase experience too (Score:2)
Re:I had a fun coinbase experience too (Score:4, Funny)
Buys Crypto Currency
Looks like an irresponsible idiot
I think the two go together. Your vendor got exactly the right impression.
But hey its the irresponsible idiots who change the world. I too have Crypto holdings :)
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Your experience is why the only credit cards I have are Visa/Mastercard, issued by my credit union. I pay 5% interest on any balances AND the credit union fraud prevention department calls me fairly often to check on a transaction that doesn't fit my usual use. F'Instance, I live in Las Vegas, and went to Chicago late last year, and made a lot of transactions in Chicago, hotel/rental car/meals etc. Soon after the first charge I made *in* Chicago, they called me on my cellphone to see if it was me making the
NEVER give out your bank account info for retail (Score:2)
It's just asking for trouble. Even if you get your money and the fees back, your time is gone forever.
LK
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If it was really so obvious, nobody would have gotten fleeced.
LK
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Coinbase isn't supposed to be "retail".
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If you have any money in that account other than the money you want them to take... you are an idiot.
Peak cyrptocurrency ... (Score:5, Insightful)
God I hope we hit peak cryptocurrency soon and I can stop seeing these goddamned fucking stories about how broken it is.
You wanted to play in an unregulated financial industry ... Well, you got it. Now shut the fuck up about it.
You're not dealing with banks, or real financial institutions, you're dealing with wannabe internet millionaires with no experience in the financial industry. If you get ripped off, this is precisely what you wanted when you said how awesome it was that it was free from government interference.
Awww, you mean you didn't know it was an unregulated financial market? Do your goddamned homework.
Do you people not understand that none of the protections you get from the actual banking industry apply here? You're in the wild west of crooks, thieves, idiots, and assholes.
I'm afraid my sympathy for people finding this out the hard way is pretty much exhausted. Now I just find it fucking hilarious.
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A lot of the people "playing" with this have far better cars than what you drive. Bitcoin has gone up $2000 in a day. Know any other investment that gives this much return? Don't think so.
Yes, with every scam, there are people who will benefit. Quite a few folks got rich before the Holland Tulip prices crashed, too.
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Yeah, sorry to be "that guy" to remind folks that everything that will happen has happened before, and since we willfully disregard history because it's not as fun as encouraging bubbles to try to exploit for profit. But no, it's so FUN to pretend that this is a total paradigm shift! We're totally rewriting the financial sector, the way money works will change forever!! The bubble grows. It'll burst. It always does.
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God I hope we hit peak cryptocurrency soon and I can stop seeing these goddamned fucking stories about how broken it is.
We need to pick a new alternative subject:
Cryptocurrency and systemd
How to get more women involved in cryptocurrency.
The FCC and Cryptocurrency
How the Russians interfered with cryptocurrency.
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They didn't make a separate account for this? (Score:2)
I figured with all of the Bitcoin exchanges that have been hacked or "hacked" (excuse for fraud), I made a separate bank account just for Coinbase transactions. There is only $10 in that account, so they aren't going to get much if they try to withdraw from it.
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Nah I just use my primary account and I keep only 50 dollars in my primary account. I pay everything (including utilities) using credit cards to get the points. Everytime my salary comes I pay off all my credit cards , rent and move whatever is left into my IRA. As I have Direct deposit of salary set up for this account I dont have a minimum balance requirement. So I am perpetually broke. It acts as a good psychological leash on useless spending. Yes I do have net Assets in the top 10% of Americans but tha
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rentpad.com
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Where I stay I pay 3000 USD a month for a house. If I were to buy the same it would be 1.2 million. With a 20% downpayment and a 1 million loan I would be paying 4000 in interest and another 1000 in principle for a 5000 a month mortgage for the same place and a 12000 dollar a year property tax so a total 6000 dollar a month. I would be getting 250 dollar tax benefit for the taxes and 1000 dollar a month benefit for the interest so my real mortgage payment would be 1000 principle+3750 a month.
For this I will
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And this was before the TCJA. Now I can only deduct upto 10000 of the property taxes and 30000 of the mortgage interest so it becomes 5000 more expensive to buy so now renting and buying are even.
I have also not included the fact that if I itemize to get the Mortgage interest deduction I lose my standard deduction. I have kept that out to keep it simple assuming that the additional state tax deductions balance out the 24000(they dont)
So even with making all assumptions in favor of buying vs renting, renting
ACH charges can be reversed (Score:2)
Hmm... (Score:2)
Big surprise (Score:2)
Anyone that has your bank account and routing number can immediately drain your account with no warning until you go to use the ATM or look at your bank statement. There is no security build in to the system at all.
Any time you give away these pieces of information to anyone, you just have to take it on faith that they won't drain your account.
This includes any time you write a personal check. The numbers are printed on the check. If you don't implicitly trust the person or the security methods of their org
The Future of Money (Score:2)
Stuff like this is why I just laugh every time some crypto-coin-kiddie starts prattling on about how 'banks are dead' and 'crypto(currency) is teh futurez.
It's a crap pyramid scheme and we all know it.
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Unregulated Gambling strikes again! (Score:2)
Dont worry i'm sure lots and lots of regulations are on the way.
If only... (Score:2)
If only there was a type of money that could be sent over the Internet but you could control it like cash... We could call it ECash. Then no one could double charge you.