Coinbase makes buying and selling crypto easy. It is a one-stop shop offering primary balance service and exchange and trading tools. It’s like a bank account that allows you to check your balance, send money to friends and family, exchange cryptocurrencies and accept crypto payments from people.
But what happens if you get scammed on Coinbase? Does Coinbase refund your stolen funds? Or are you alone?
What risks does Coinbase cover?
Coinbase accepts responsibility for risks arising from an issue within its control. For example, if your Coinbase account is stolen due to an error in Coinbase’s systems or security procedures leading to a hack, Coinbase will pay for any losses you suffer.
You can get up to $1,000,000 equal to the value of the cryptocurrency you lost, from the day and time Coinbase approves your refund request.
However, you must satisfy a number of requirements to qualify for this refund. Among these things are
- Be active for at least 30 days before the loss event
- An active Coinbase One subscription
- Two-factor authentication is turned on
- An account in good standing
Does Coinbase refund you if you get scammed?
No, Coinbase will not refund you if you are scammed. If you engage in the fraudulent activity that caused you to be defrauded, Coinbase will not refund you. You need to do your due diligence before sending your digital assets to anyone.
Coinbase Account Protection is not insurance and does not cover all losses. For example, losses due to fraud such as the infamous Coinbase email scam are not covered. Loss of funds held outside the main account is also not covered. Also, if you send money to the wrong address, it’s on you.
If you voluntarily send digital assets to a third party connected to an investment scam, you also cannot get a refund. Finally, Coinbase does not cover money lost due to a security flaw on your device or an action that compromised the security of your account and your failure to inform them.
As reported by Decrypt, the recently dismissed lawsuit against Coinbase in which clients sought refunds for transactions, fees and losses from trading in unregistered securities marketed on the platform revealed how limited the refund policy is.
What to do if you get scammed on Coinbase?
While Coinbase is one of the best crypto exchanges in the market, it can only do so much to refund customers who lose assets. If that happens to you, contact Coinbase soon enough, even though the chances of getting a refund are close to zero.
This alert will prompt Coinbase to take immediate steps to stop the fraud from getting worse, recover lost assets if possible, and alert customers. At the very least, it will protect other customers from becoming victims.
Know how you are protected on Coinbase
Being scammed is a major fear among cryptocurrency investors, considering the trend of cybercrime in the industry in recent years. Unfortunately, Coinbase cannot refund losses due to fraud. It is up to you to use the security features available to keep your account safe.
Any transaction you knowingly make with another person is your responsibility. So always do your due diligence before investing in anything.
