Coinbase Slammed For Terrible Customer Service After Hackers Drain Accounts (cnbc.com) 57
An anonymous reader quotes a report from CNBC: Interviews with Coinbase customers around the country and a review of thousands of complaints reveal a pattern of account takeovers, where users see money suddenly vanish from their account, followed by poor customer service from Coinbase that made those users feel left hanging and angry. Making the issue even worse, cryptocurrency transactions cannot be reversed, according to the FBI. Experts say once criminals access an account, funds can be drained in minutes. Coinbase, which went public in April, has a market cap of about $65 billion, has more than 68 million users in 100-plus countries, more than 2,100 full-time employees and $223 billion in held assets, according to the company. While the cryptocurrency exchange company has grown rapidly, complaints have continued to arise. Since 2016, Coinbase users have filed more than 11,000 complaints against Coinbase with the Federal Trade Commission and Consumer Financial Protection Bureau, mostly related to customer service. Former employees told CNBC the company's customer service practices shifted over time, with representatives struggling to keep up with demand.
After a review of Coinbase's complaints, the Better Business Bureau in March determined the company has a "pattern of complaints from customers who state they are locked out of their accounts, even after providing required information or updates." The organization has received 1,128 complaints in the past three years, according to its website. BBB said it sent a letter to Coinbase in order to address the customers' complaints and receive feedback from any implemented improvements. The group has "not heard a response from this business, about the situation, pattern of complaints for the last three years," Alma Galvan, a marketing and communication manager with the organization, said in an email to CNBC. In an email to CNBC, Coinbase said: "Over the years, we've consistently updated our customer support offerings to help us scale. In early 2020, we moved to email as our primary channel of support. Many of our customer inquiries require our agents to conduct a significant amount of research to resolve the issue. And, to avoid long wait times, communicating asynchronously via email was the preferred method. However, we recognize that customers want real-time support, and that's why we're rolling out phone support for ATOs this month and live messaging for all customers later this year."
Asked about the number of customer service complaints, the company said: "Over the past several years, our customer base grew exponentially. We grew from 43+ million users at the end of 2020 to 68+ million registered users, as of June 30, 2021. Through all this growth, some of our customers unfortunately experienced challenges and delays reaching our support team, which resulted in a negative impact for some of our customers. Improving our customer experience remains a top priority for Coinbase." They declined to disclose how many customers' accounts have been hacked or the total amount it has refunded customers as a result of the hacks.
After a review of Coinbase's complaints, the Better Business Bureau in March determined the company has a "pattern of complaints from customers who state they are locked out of their accounts, even after providing required information or updates." The organization has received 1,128 complaints in the past three years, according to its website. BBB said it sent a letter to Coinbase in order to address the customers' complaints and receive feedback from any implemented improvements. The group has "not heard a response from this business, about the situation, pattern of complaints for the last three years," Alma Galvan, a marketing and communication manager with the organization, said in an email to CNBC. In an email to CNBC, Coinbase said: "Over the years, we've consistently updated our customer support offerings to help us scale. In early 2020, we moved to email as our primary channel of support. Many of our customer inquiries require our agents to conduct a significant amount of research to resolve the issue. And, to avoid long wait times, communicating asynchronously via email was the preferred method. However, we recognize that customers want real-time support, and that's why we're rolling out phone support for ATOs this month and live messaging for all customers later this year."
Asked about the number of customer service complaints, the company said: "Over the past several years, our customer base grew exponentially. We grew from 43+ million users at the end of 2020 to 68+ million registered users, as of June 30, 2021. Through all this growth, some of our customers unfortunately experienced challenges and delays reaching our support team, which resulted in a negative impact for some of our customers. Improving our customer experience remains a top priority for Coinbase." They declined to disclose how many customers' accounts have been hacked or the total amount it has refunded customers as a result of the hacks.
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Your family is clearly made up of heavily-concentrated genes.
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I find it very interesting that you need to specify a weedy little liberal and not someone like The Rock, Joe Tate, or Mick Foley to pit your imaginary alt-right champions against. Is it some kind of MAGA thing that you need to ensure you don't get involved in a fair fight, or just your own malevolent little compensation fantasies?
Oh, no, not again! (Score:3)
Yet another crypto exchange is mysteriously "hacked".
Next week's news: Crypto exchange owner suddenly disappears. Last seen boarding a 'plane for Thailand.
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Outbreak of snakes linked to traveling snakecatcher!
Re:Oh, no, not again! (Score:5, Insightful)
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to reduce wait time, they remove real-time support (Score:2)
that makes a lot of sense....
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Support!! Email!!!
>in an email to CNBC, Coinbase said: "Over the years, we've consistently updated our customer support offerings to help us scale. In early 2020, we moved to email as our primary channel of support. Many of our customer inquiries require our agents to conduct a significant amount of research to resolve the issue.
I think it's more like....
In an email to CNBC, Coinbase said: "Over the years, we've consistently updated our customer support offerings to help us scale. In early 2020, we moved
Horrible customer service is their motto (Score:1)
They have always had horrible customer service. Since the beginning. They do not have a direct call line and itâ(TM)s your luck whether or not they respond to a request for help that you send in by form or email. Most of the time you are left hanging whether it be for account details or millions in crypto. Not a company I would do real-world financial investment with.
Re:Horrible customer service is their motto (Score:5, Insightful)
It's almost as if you think the people who run these sites are regulated or accountable to anybody in any way.
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Honestly - this. Banks are regulated and have to do things like "talk to customers". Unregulated decentralized finance exchanges... don't.
Maybe a real nice one will show up which talks to customers. Maybe CEO #2 will continue talking to customers. Probably not though. After all, the conversations basically goes like this:
"Sir, we spent [non-0 amount] talking to customers."
"And if we didn't, I would have [non-0 amount in my bank account directly, right?"
"That's right."
"Yeah, we're not doing that anymor
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And even banks have variable support. I want institutions that hold my money to be very responsive.
Seems reasonable, theses places holding fake money offer fake support.
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I forget, how many people from paypal went over to coinbase?
To be fair, there's not a lot they *CAN* do if someone has shit security and their account/email/phone gets compromised and wallet drained. Well, short of using their own funds to make a person whole which isn't reasonable.
They could add more security and make it mandatory but there's a point where it's so secure even the owner can't access it...or it gets locked so easily (ahem, paypal!) and the unlock process is so onerous to avoid fraud that it
Can concur (Score:4, Interesting)
I have an account with Coinbase and another with Binance. There are occasional hiccups with either service, where amounts can't be moved, there are extended delays in transfers, etc. And it seems that most organizations post-2019 have poorer customer service levels. It's not just these guys. Although it's more frustrating when it comes to someone's "money." If it was a traditional fiat-based bank, and my account got taken over I too would be pissed if I had trouble reaching anyone.
The account takeovers are curious, I'll say. If users enable multi-factor authentication and enable all of the rest of the security mechanisms that are available I'd think it would be extremely difficult for a random bad actor to hijack someone's account. Am I wrong?
Re:Can concur (Score:5, Insightful)
Am I wrong?
No, you're not.
OTOH these sites aren't regulated and the people who run them aren't accountable to anybody at all. You hand them your money and it vanishes? That's your problem.
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Yeah but at least it's kept safe from the evil gubbmint! What have financial regulations ever done for us! /s
Honestly nothing will make me happier than to see all people who invested in crypto lose all their money with no recourse. Imagine the benefits to the climate.
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It took awhile for me to come around. I thought it was stupid internet magic money, and that misconception made me pointedly ignore it. I refused to learn anything about it beyond a cursory investigation where I subconsciously sought out only what confirmed my biases. It's only used by criminals! It's killing the planet! There's a high enough supply of FUD to keep a skeptic like me occupied for a long
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No more pump-and-dump.
ie. You'll have to take it out of the hands of the crypto-wealthy.
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Regulation and accountability.
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Our current world banking system works to funnel more wealth to the wealthy.
So does crypto.
eg. People like Elon Musk can manipulate crypto values at will.
So can the handful of big Bitcoin miners by pumping+dumping.
Bitcoin might just be the best way to level wealth distribution. It's already serving people in poorer nations who never had access to banking and giving those people new opportunities.
Let's hope none of those poor people bought into Bitcoin when it was at $60,000.
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Do you really think people will stop mining any of the other eleventy-thousand bitcoin spinoffs and side-coins?
If everyone loses money... yes. Why do you think people mine?
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They mine as a speculative activity.
Good. Continue this train of thought. What do you think speculators think of a speculation vehicle that suddenly had its value wiped out and everyone lost money?
You'll get there eventually. You'll probably find yourself at the same answer to what happened to the number of tulip farmers in May of 1637.
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The account takeovers are curious, I'll say. If users enable multi-factor authentication and enable all of the rest of the security mechanisms that are available I'd think it would be extremely difficult for a random bad actor to hijack someone's account. Am I wrong?
Several of the Coinbase attacks are using SIM Swapping, so if the MFA is SIM based, it will not protect the user.
Coinbase Account Hacked [reddit.com]
Cryptocurrency accounts wiped out 'in an instant' by cyber crooks [abcactionnews.com]
SIM swapping victim alleges T-Mobile failed to stop $20,000 cryptocurrency scam [cyberscoop.com]
Coinbase recommends the use of U2F or TOTP MFA instead.
Phone-based attacks [coinbase.com]
How to stop SIM swap scammers from stealing your Bitcoin [fortune.com]
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If only there was some way to secure crypto that did not rely on passwords, your phone number, and was impervious to other people taking your money...
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Why Worry? (Score:5, Funny)
They are after all a financial company governed by rules and regulations that deal with all financial institutions including banks. So everyone's funds are safe right? They are completely insured by the government right? RIGHT? /sarcasm.
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They are after all a financial company governed by rules and regulations that deal with all financial institutions including banks. So everyone's funds are safe right? They are completely insured by the government right? RIGHT? /sarcasm.
Is there such a thing as gamblers' insurance, you know, like for gambling in casinos? What's the old saying, "If you're at the table & you don't know who the mark is, you're the mark."
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So Coinbase is no different in that regard from Schwab, Ameritrade, or Robinhood.
Ding ding ding. We have a winner. You named three companies who are not banks and don't hold "currency". Just remember that next time someone suggest crypto as a payment system.
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But investment accounts at regular brokerages are insured by a separate entity, SIPC. Not so cryptocurrency.
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Poor customer service is a feature (Score:2)
Customers do not make purchasing decisions based on poor and excellent service. They make decisions based on cost, and will always gravitate towards the cheapest option.
Apple has entered the chat. (Score:2)
The most expensive, biggest (market cap), and the worst service ever (I have never bought anything from Apple - but I have to deal with their "enterprise" support daily at work).
Schadenfreude... (Score:2)
âoeHackedâ is media catch-all (Score:1)
Re: Hacked is media catch-all (Score:1)
People want.... (Score:2)
The convenience of using the same password as on their favorite woodworking forum, 100% profit weekly and the same protection as the FDIC insurance as on their 1.3% checking account.
Wait a minute (Score:2)
The very thing everyone praises about cryptocurrencies, decentralization and no controlling authority and difficulty in tracing actors, is the very thing that makes these account take-overs attractive and profita
Remarkable (Score:1)
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No worse than people who claim to have no faith in what the medical experts say about vaccines and saying those who take the vaccines are sheep, then running out and dying after ingesting a drug which is used to deworm . . . sheep.
And no, there is no understandlbe reason to not have faithin the financial syst
Aren't most exchanges run from a basement? (Score:2)
-Then again robinhood managed to pull one off so anything is possible where possible profits are involved.
Ah, the joys of crypto (Score:2)
Right, no government intervention, oversight, or regulation.
Reverse a payment? Sorry, can't do that (my credit card will.)
Screw up, and blow off the suckers, er, customers? Yep.
As Charlie Stross said, a year or two ago, "quick! invest in cryptocurrency now, before you miss your chance to lose everything!"