Will Coinbase Refund if Hacked? (Solved)
Coinbase’s services include its online non-custodial wallet, which people use to interact with dApps and crypto-related services across the web, and its exchange for trading crypto. They claim to have more than 103 million verified users, making them one of the biggest crypto companies in the world.
Ever heard of the saying, “not your keys, not your coins?” It refers to custodial wallets, or wallets on exchanges. They have less security and privacy than their counterparts because the exchange holds onto your keys, safeguarding the user’s funds.
One of the main issues people have with custodial wallets (like your Coinbase account) is getting hacked and losing their stored crypto. But Coinbase will refund you if your account gets hacked, even if the SIPC does not insure the exchange. Thankfully, it provides customer help services to deal with these kinds of issues.
So If you’ve ever asked yourself “will Coinbase refund if hacked” in the unlikely event of a hack, continue to read this article; you’ll find information about the process.
Is it safe to keep money on Coinbase?
First, there’s always a risk in holding your crypto in any custodial wallet. Since the information and keys to your wallet are online, you are always vulnerable to hackers. Not your keys, not your funds.
Even though we strongly discourage it, leaving your crypto on Coinbase is safer than other exchanges. Coinbase is considered one of the most secure and reliable crypto platforms in the world—that’s why they provide solutions to customers who suffer from hackers and phishing attacks.
Is Coinbase insured for hacks?
The FDIC insures Coinbase and your fiat money, which only applies to USD deposits. Unfortunately, it won’t cover crypto holdings.
Your Coinbase account is insured for up to $250,000 in case of a breach or failure in Coinbase’s security.
Will Coinbase refund if hacked?
In the unlikely event of an unauthorized transaction from your Coinbase account, you can contact Coinbase customer service through various options like phone, email, or their website.
If you’re confused or don’t know where to start, keep reading to learn how to request your refund from Coinbase quickly.
How long does Coinbase take to refund?
When you open a case and ask for a refund, the Coinbase team usually takes a few weeks before they give you a response regarding your case. If they determine there was an unauthorized transaction, you’ll get your funds back in less than a day.
If you opened a case and haven’t received any response in 30 days, you should write to the customer service team to ensure everything is taken care of.
How many Coinbase accounts have been hacked?
The company revealed that at least 6,000 users suffered from a hack and stolen funds in 2021.
This is the problem with centralized exchanges—you are too exposed to privacy breaches and hacks.
Storing your crypto holdings is like storing your money; you want to keep it safe. Using a cold wallet is the most secure option to keep your crypto safe from hackers as you hold onto your keys.
How to request a refund from Coinbase
If someone hacked your Coinbase account, you should follow these steps to contact customer support and request a refund:
- Go to the Coinbase Help website
- Click on ‘Privacy and Security’
- Go to the ‘Account Compromised’ option and click on ‘My account was compromised.
- Read the instructions thoroughly since they give detailed steps to secure your account
- Go to the ‘Contact Coinbase Support’ section and click on ‘Support Form’
- Ensure you select ‘Coinbase’ as your product. Then, you can either select chat support or file an email form to solve your issue and request a refund.
Email Form
If you went with this option, follow these instructions to open a case:
- Click on the email form below
- Select the following options:
"Let's get started": Account compromised and unauthorized accounts
"What is your issue about?": My account is compromised or has been hacked.
"What seems to be the problem?": I sent funds to a third party- You’ll have to fill out a form with questions about the situation and the hacker’s actions
- Click on ‘Submit’
Since this is a delicate situation, it may take weeks for the team to reach out with a decision regarding your request.
Chat Support
You can also click on the ‘Message Us’ option to connect with the Coinbase Support team instantly. If you do, you’ll have to answer some questions about your case to an automatic chat service, then they’ll connect you with an agent.
You can always avoid these problems by getting a cold wallet and storing your assets offline. Want to know more about it?
What is a cold wallet?
A cold wallet, or hardware wallet, is a crypto and digital assets storage device that keeps your assets stored offline. You can manage your funds via an app while keeping your crypto in a hardware wallet, similar to a USB drive. Ledger and Trezor are the most popular cold wallets on the market right now.
That way, you are less likely to get your crypto stolen since your funds are only online when you connect it to the computer and access the app. Therefore, you eliminate the chance of hackers or phishing attacks stealing your funds.
How to avoid getting hacked
You can suffer numerous hacks and scams if you have a custodial wallet. Some cases are preventable, others inevitable.
To avoid getting hacked, be careful which links you open and avoid leaving your crypto on exchanges.
Phishing attacks
The most common attack in the crypto environment. Many people experience phishing attacks daily, and consequently, their assets are stolen by hackers. How does this happen though?
The hackers send a link to your email or place it somewhere you’ll be tempted to click—that way, they get access to your computer or mobile device. Then, they connect to your Coinbase account and transfer your funds to their account.
Luckily, you can take precautions to avoid getting hacked:
- Check every link before you click it.
- Don’t read or reply to emails from accounts you don’t recognize
- Choose strong passwords and sign in with 2-step verification (2FA).
If your account is hacked, you should read the Coinbase privacy and security information to keep your account safe.
Breach hacks
Breach hacks are large-scale attacks, targeting not just one but many crypto wallets. In most cases, these attacks are perpetrated by third parties who exploit security flaws and issues in the system, accessing as many accounts as possible.
These issues are always taken care of by Coinbase since they are caused by security issues in Coinbase, and they’re not your fault.
Summary
If you find yourself in the unpleasant situation of getting your account hacked and your crypto stolen, you can always request a Coinbase refund. By contacting customer service, you’ll get help getting your stolen crypto back.
You should always use strong passwords and 2-step verification to sign in to your Coinbase account; that way, hackers won’t have an easy path to steal your funds. Also, consider holding your most valuable assets in a cold wallet; don’t leave your crypto in your Coinbase account.
