The crypto boom has attracted a diverse array of investors on platforms such as Coinbase, from seasoned traders to newcomers looking to capitalize on the digital gold rush.
But as the market heats up, so too do the risks, especially for those who may not be well-versed in the intricacies of cryptocurrency. Such was the case for Fred, a Connecticut resident in his 60s, who recently found himself at the center of a sophisticated scam that drained over $100,000 from his Coinbase account in a matter of minutes.
Fred, who has asked that his last name not be used to protect his privacy, had been dabbling in cryptocurrencies like Bitcoin and Ethereum. With the market on an upswing, he decided it was time to make some adjustments to his holdings. But when he encountered difficulties navigating the Coinbase website, Fred did what many would do—he sought help. A quick Google search for Coinbase customer service brought up a phone number prominently displayed in an ad at the top of the search results.
Relieved to have found what he thought was the help he needed, Fred called the number. On the other end of the line was a representative with an Indian accent, who quickly informed Fred that his account was “outdated” and required immediate updating. Trusting the seemingly official advice, Fred followed the instructions he was given. But within 20 minutes, his crypto fortune had vanished.
What Fred didn’t realize at the time was that the person he had called wasn’t a Coinbase representative at all but a scammer. The fraudulent rep convinced Fred to share his Coinbase password and even to log into his online banking portal. The scam only unraveled when Fred received a call from Wells Fargo alerting him to unusual activity on his account. By then, it was too late—the scammer had already siphoned off over $100,000 worth of Bitcoin, Ethereum, and cash.
Fred is understandably furious, feeling both embarrassed and betrayed. “I was a lamb to the slaughter,” he admits, lamenting his lack of deep knowledge about the crypto world. But his anger is not just directed at the scammer; he’s also pointing fingers at Coinbase for the ease with which his accounts were drained and, more pointedly, at Google for allowing the scammer’s ad to appear at the top of its search results.
“How can Google allow this? The site is set up for fraud. Anybody can do it. Their phone rings and, yippee, they know they have a sucker on the line,” Fred fumes. His frustration is palpable, and it’s easy to see why. Google, after all, is supposed to be a trusted gateway to the internet, not a platform for scammers to prey on unsuspecting users.
Unfortunately, Fred’s case is not an isolated incident. Scammers have increasingly been using Google ads to fleece not just crypto novices but even seasoned users. In a recent Medium post, an anonymous author described how he lost $3,000 worth of USDC stablecoin after clicking on what appeared to be a legitimate ad for a crypto service called Superbridge. The ad linked to what seemed to be the official Superbridge website, but in reality, it redirected him to a fake site designed to steal his funds. The scam was so subtle that it would have been nearly impossible to detect without carefully checking the URL.
These incidents raise serious questions about Google’s ad vetting process. While the tech giant claims to be vigilant in preventing scams, the persistence of these fraudulent ads suggests otherwise. Google stated in an email to Fortune that it suspended 12.7 million advertiser accounts in 2023 alone, yet the problem persists. The company admitted that scammers have become increasingly sophisticated, using techniques like “cloaking” to bypass Google’s automated screening tools.
For Fred, the fallout from the scam has been devastating. After reporting the incident to local police, he was directed to the FBI office in New Haven, Connecticut. There, an agent connected him with law enforcement in India, where it was revealed that his stolen funds had been pooled with money from other victims in a crypto wallet. The agencies are now working to seize the wallet, giving Fred a glimmer of hope that he may recover at least some of his lost money.
Despite this, Fred’s faith in the crypto market has been deeply shaken. “I’m done for now with investing in crypto,” he says. However, he hasn’t ruled out a return to the market if his funds are recovered. “Maybe I’ll buy one Bitcoin and call it a day,” he quips, a hint of weary optimism in his voice.
Fred’s story is a stark reminder that the Wild West of cryptocurrency is still rife with dangers, especially for those who aren’t fully prepared. As the crypto market continues to grow, so too does the need for better protections against scams, both from the platforms that facilitate these transactions and from the tech companies that connect users to them. Until then, investors like Fred must remain vigilant, knowing that even the smallest misstep can lead to catastrophic losses.
