Coinbase Adds New Wallet Security Feature To Protect Against Phishing and Scams

US-based cryptocurrency platform Coinbase is enhancing the safety of Coinbase Wallet as threats to users increase.

The crypto exchange says it has added features to its wallet to help protect its users against scams such as phishing attacks and malicious airdrops.

According to the crypto exchange, the Coinbase Wallet will now offer more clarity to users when they are interacting with smart contracts or decentralized applications (DApps) to ensure they are well aware of every action they take, from coin swaps to non-fungible token (NFT) minting.

“Transaction previews: To give you more peace of mind as you conduct swaps, mint NFTs, and transact in web3, Coinbase Wallet now shows you an estimate of how your token and NFT balances will change during a transaction before you hit ‘confirm.’

Token approval alerts: We’ve made it clear when a DApp is requesting approval to withdraw your crypto and/or NFTs. Of course, we still recommend that each user does their own research before granting a DApp permission to access their assets.”

Coinbase also says that its digital asset wallet now offers “enhanced layers of protection” that protect against potential scams. According to the US crypto exchange, a filtering mechanism that blocks flagged DApps and addresses has been introduced. The flagged DApps and addresses are contained in a blacklist “incorporating tens of thousands of domains and more than one million wallet and smart contract addresses.”

To protect against airdrops created by scammers to entice users into interacting with dangerous websites, Coinbase has a blacklist of the addresses known for perpetrating the scheme. In addition, such airdropped assets from blacklisted addresses are hidden from users. Users also have the ability to hide suspicious airdrops and report them as well.

The crypto exchange’s wallet has also added a new layer of permission management allowing users to “revoke DApp connections directly from within the app” and thereby reduce their risk exposure.

Additionally, users will be able to view and revoke existing token allowances within the next few weeks.