Crypto Clone Alert!, FCA Issues Warning Over Coinbase Impersonator

Amidst the scams and impersonations in the cryptocurrency market, the exchange giant Coinbase finds itself once again in the crosshairs of fraudsters. The UK’s Financial Conduct Authority (FCA) recently sounded the alarm over a clone company masquerading as Coinbase under the name Coinbaseie. 

Coinbaseie, the latest clone company to surface in the crypto sphere, has been employing deceptive tactics to lure unsuspecting investors. 

Operating under the guise of Coinbase representatives, scammers associated with Coinbaseie have been cold-calling consumers and sending emails from the domain Coinbaseie.com. 

Leveraging Coinbase’s reputable name and regulatory compliance, these fraudsters entice individuals into setting up trading accounts, promising lucrative returns. 

However, the FCA has warned sternly against falling prey to such schemes, emphasizing that Coinbaseie has no affiliation with the legitimate exchange.

Related: UK’s FCA Adds 143 Crypto Exchanges, Including Huobi-owned HTX and KuCoin, to Warning List

The FCA’s cautionary stance is no surprise, given the proliferation of similar clone scams targeting prominent companies in the financial sector. 

Instances of impersonation have targeted well-known entities and companies in the past. 

Coinbase has taken proactive measures to safeguard its users and uphold industry standards in response to the escalating threat posed by clone companies and regulatory hurdles. 

The exchange recently enlisted the expertise of former UK minister George Osborne to advise on regulatory affairs and global expansion. 

Osborne’s appointment reflects Coinbase’s commitment to fortifying its defenses against fraudulent activities.

Highrise in crypto scam: Russian Central Bank Statistics

The Russian Central Bank revealed alarming statistics indicating a sharp rise in financial scams with crypto-related themes. 

In its official release, the bank reported a year-on-year increase of almost 16% in financial fraud cases in 2023, with the overwhelming majority of these scams incorporating elements of cryptocurrency. 

From pyramid schemes to illicit brokers, using cryptocurrencies for payments or investments has become a common tactic employed by fraudulent entities seeking to deceive unsuspecting victims.

In response to the surge in crypto-linked financial scams, the Russian Central Bank has escalated its regulatory efforts to combat fraudulent activities in the financial market. 

The bank disclosed that it had identified over 5,700 entities engaging in illegal activities, including financial pyramids and pseudo-investment projects with crypto themes. 

Moreover, the bank reported launching more than 125 criminal cases and 620 administrative cases against suspected perpetrators of financial scams, many of whom utilized cryptocurrencies or crypto-related schemes.

The bank’s crackdown on fraudulent activities extends to online platforms and social media channels, with over 11,200 web pages belonging to illegal financial market participants being blocked. 

Collaborative efforts with regulatory bodies such as the Federal Antimonopoly Service and Roskomnadzor aim to enhance surveillance and enforcement measures to safeguard consumers from falling victim to crypto-linked scams.

Also Read: Crypto Scams Hit Fifth Highest Record in December With Over $100M Stolen