A scammer posing as Coinbase customer support allegedly stole more than $2 million in cryptocurrency from a U.S. retiree this year. The case shows a sharp shift in crypto crime. Many attackers now focus on people, not exchange systems. They use urgent texts and calm phone calls to sell a fake “security” story.
What allegedly happened
Reports say 67-year-old retiree Ed Suman held a large crypto portfolio, including bitcoin and ether, on a Trezor hardware wallet. In March, he received a text that looked like a Coinbase alert about unauthorized activity. He replied, and a caller claimed to be a Coinbase security employee. The caller then walked him through a “security procedure.” It required entering his seed phrase on a site that looked like Coinbase. Days later, the scammer called again. After that, Suman’s holdings were gone.
Why these scams keep working
This type of fraud succeeds because it feels official. Criminals often sound helpful and patient. Furthermore, victims think they are stopping a theft in progress. In May, Coinbase said criminals bribed and recruited some support workers to access customer information. Attackers then used those details to impersonate Coinbase and pressure users into sending assets away. Coinbase said it refused an extortion demand and planned to reimburse impacted customers. It also warned that costs could reach hundreds of millions of dollars.
You can lower your risk with a few habits:
- Never share your seed phrase, not even with “support.”
- Treat unexpected texts and calls as suspicious.
- Start support chats only inside the official app or website.
- Don’t click links from alerts. Type the site yourself.
- Pause and verify before moving funds, especially under pressure.
Crypto markets keep growing, and so do these confidence tricks. However, one rule beats most scams: real support will not ask for your seed phrase. If someone does, end the conversation and lock down your account.
