Why is Coinbase Asking for My SSN? (2024)

FAQs

Why does Coinbase need my SSN? ›

Coinbase uses identity verification in order to comply with Know Your Customer (KYC) laws. KYC is a way to identify and confirm that a customer is who they say they are. It's a multi-step process that helps prevent the creation and use of fraudulent accounts.

Yes. Coinbase Pro is simply a different account/membership level that uses the traditional Coinbase exchange, and inherits all of its security guarantees (as well as potential flaws).

Why am I being asked to go through Identity Verification? As a regulated financial services company, Coinbase is required to identify the users on our platform. Per the Coinbase User Terms, we require all customers to verify their identity to continue using our service.

Any legitimate investment company will need your SSN in order to properly report annual results on your 1099 form and to the IRS. However, beware of places like Robinhood.

In order to protect our customers, prevent fraudulent activity, and be fully compliant with regulations for the trading of digital assets, we require the submission of personally identifiable information. This includes the submission of selfies, SSN, bank statements, etc.

At Coinbase, we're committed to security by using industry best practices and storing up to 97% of bitcoins in encrypted, geographically separated, offline storage. To further protect our customers, all of the bitcoins stored in online computers are insured.

Our primary purpose in collecting personal information is to provide you with a secure, efficient, and customized experience. Additionally, verifying your identity helps to prevent fraud from occurring on our platform. We will never sell or rent your personal information to third parties.

The Social Security Administration protects your Social Security number and keeps your records confidential. We don't give your number to anyone, except when authorized by law. You should be careful about sharing your number, even when you're asked for it.

WalletHub, Financial Company

It is generally safe to give customer service representatives your SSN. If you have called your credit card's customer service then the bank's representative could have reasons to ask for your social security number for security purposes.

As part of our commitment to remain the most trusted cryptocurrency platform, all IDs must be verified through the Coinbase website or mobile app.

Does Coinbase report to IRS? ›

Yes. Coinbase reports your cryptocurrency transactions to the IRS before the start of tax filing season. As a Coinbase.com customer, you'll receive a 1099 form if you pay US taxes and earn crypto gains over $600.

Tips to avoid these crypto scams

Only send cryptocurrency to trusted third parties. Search for publicly verifiable reviews on Google, Trustpilot, or Better Business Bureau to validate their services. Research the organization thoroughly.

ShapeShift. Using ShapeShift you can buy bitcoins (BTC) with no ID, but that is because you need to buy altcoins or another digital token before buying. If you already have a token like Litecoin, Ripple (XRP), Tether (USDT), Monero (XMR) or Ethereum (ETH) then you can buy bitcoins in seconds with no verification.

For all US customers, your legal name and date of birth on your Coinbase account needs to match the information on your photo ID to successfully verify your info.

Eligibility. To be eligible to use the Coinbase Services, you must be at least 18 years old, and reside in the United States.

Answer: Most peer-to-peer crypto exchange platforms do not require you to follow the Know-Your-Customer or KYC and other verification guidelines. These include LocalCryptos, ShapeShift, BitQuick, and LocalBitcoins.com, Paxful, and DameCoins some of which you can trade up to a maximum of 2BTC.

You do need to give your Social Security number (SSN) to:

Employers. The three main credit reporting agencies: Equifax, Experian, and TransUnion. Federal and state agencies when applying for benefits: Social Security, Medicare, disability, Medicaid, and other aid programs` Investment advisors and brokerage houses.

Because the IRS considers cryptocurrency trading to be a taxable event, ALL crypto brokers must acquire your SSN in order to report your trading activity to Uncle Sam. There is no exception. Anyone who tells you differently is deceiving you. And you'll end up paying the price for it.

"Coinbase and our customers are not in any direct danger of liquidity or credit risk," chief financial officer Alesia Haas wrote in a blog on Tuesday. "Regardless of whether the Binance/FTX transaction completes, we have very little exposure to FTX and we have no exposure to its token, FTT."

In 49 minutes on April 24, hackers used 6,000 separate transactions to drain $190,000 from Aggarwal's account, according to the suit. Aggarwal says Coinbase has refused to refund his lost cryptocurrency.

How do I get my money out of Coinbase? ›

Coinbase collects personal information that is necessary to provide you with our services. This primarily includes data we collect because it is mandated by law—such as when we must comply with anti-money laundering laws—or to verify your identity and protect you from potential fraudulent activity.

In order to request reimbursem*nt under the Coinbase Account Protection, please contact us via the Coinbase Help Center to lock your Coinbase Account and report that someone gained unauthorized access to your Coinbase account and withdrew your funds without your permission.

You should never provide your SSN to someone you don't know who calls you on the phone and requests it. This same warning applies to unsolicited emails and any forms you fill out on the internet. In general, don't give your SSN to anyone unless you are absolutely certain they have a reason and a right to have it.

Obtain credit cards or loans in your name

And a stolen SSN gives them plenty of opportunities to steal your money or destroy your credit. In 2020 alone, there were 363,092 cases of fraud by new credit card accounts [*]. With just your SSN, name, and address, fraudsters can take out a credit card or loan in your name.

A threat actor can use your Social Security number together with PII to commit many forms of identity theft. Among other things, they can use this information to apply for loans, avoid criminal responsibility, or attempt to steal your tax refunds, social benefits, or even medical coverage.

You should never send your SSN by email. This is because you can't guarantee where the email will be stored or passed along after sending it. Furthermore, your SSN is at risk if either email account is hacked. So even if the email transfer is secure and you delete it on your side, there's still an unknown risk present.

Giving someone the last four digits of your SSN could lead to identity theft as this is the direct way to do the most damage to your financial information. Why? Banks and other official institutions often only request the last four digits of your SSN to confirm your identity.

Not only can they open credit in your name, steal your money and government benefits, they can also obtain medical care and tax refunds in your name. Guard your “Final Four.” Although they are widely used and shared, the last four digits of your SSN are the most important to protect.

Why won t my ID verify on Coinbase? ›

Here are a few tips to help complete this step. Ensure that your document is valid. We are unable to accept an upload of an expired ID. Ensure your identification document is in a well lit area without much glare.

If you don't report taxable crypto activity and face an IRS audit, you may incur interest, penalties, or even criminal charges. It may be considered tax evasion or fraud, said David Canedo, a Milwaukee-based CPA and tax specialist product manager at Accointing, a crypto tracking and tax reporting tool.

After an initial failure to file, the IRS will notify any taxpayer who hasn't completed their annual return or reports. If, after 90 days, you still haven't included your crypto gains on Form 8938, you could face a fine of up to $50,000.

Yes. A variety of large crypto exchanges have already confirmed they report to the IRS. Back in 2016, the IRS won a John Doe summons against Coinbase. A John Doe summons compels a given exchange to share user data with the IRS so it can be used to identify and audit taxpayers, as well as prosecute those evading taxes.

No, your bank account can't be hacked through Coinbase. But hackers can hack your bank account and transfer to any crypto wallet such as Coinbase to avoid being tracked down.

Coinbase Got Hacked

The attackers likely used a large-scale email phishing campaign to trick customers into handing over the email addresses, passwords, and numbers linked to their accounts. The cybercriminals then broke into accounts by exploiting a flaw in the two-factor SMS authentication system.

Coinbase provides a service similar to Paypal. People use it to send and receive money. You are seeing a charge on your statement because someone connected your bank account on our website and used it to purchase bitcoin (a digital currency).

There is no need to use SSN while buying Bitcoin. You can easily buy Bitcoin and many other cryptocurrencies with a credit card using online platforms like .

So basically, anybody can invest in cryptocurrency and it doesn't matter where you are or where you are from since buying and selling Bitcoin is not considered a form of employment.

If you have the chance to buy prepaid cards from your local store in cash instead of your debit/credit card, you'll reach the ultimate level of anonymity for such a method. Prepaid Bitcoin vouchers are a fast-rising way of buying Bitcoin because they are simple and require no KYC.

How long does it take for Coinbase to review your account? ›

2. Go to the Coinbase sign in page and enter your email address and password. The account recovery process usually takes 48 hours to complete but can sometimes take longer. After 24 hours, you should be able to sign in to your account and complete buys and sells.

Once submitted, Coinbase will typically complete the ID approval process in 2 to 3 minutes. However, there can be instances where it can take up to 2 hours. The verification speed is dependent on successfully uploading the correct Government-issued documentation and a photograph.

As a provider of financial services, Coinbase must accurately determine our customers' countries of residence. This allows us to provide appropriate payment methods based on residency.

Does Coinbase report to credit bureaus? No. Coinbase does not report any loan-related information or activity to credit reporting agencies at this time.

Coinbase reports to the IRS. It sends Forms 1099-MISC to the IRS and U.S. traders who made more than $600 in crypto rewards or staking. Regardless of whether you receive tax documents, you need to report all crypto earnings on your tax returns.

Coinbase collects personal information that is necessary to provide you with our services. This primarily includes data we collect because it is mandated by law—such as when we must comply with anti-money laundering laws—or to verify your identity and protect you from potential fraudulent activity.

Coinbase will require you to provide an SSN when creating an account for three main reasons: to verify the identity of the account holder, to provide accurate tax documentation to the IRS, and to comply with anti-money laundering laws.

ShapeShift. Using ShapeShift you can buy bitcoins (BTC) with no ID, but that is because you need to buy altcoins or another digital token before buying. If you already have a token like Litecoin, Ripple (XRP), Tether (USDT), Monero (XMR) or Ethereum (ETH) then you can buy bitcoins in seconds with no verification.

Yes. Coinbase reports your cryptocurrency transactions to the IRS before the start of tax filing season. As a Coinbase.com customer, you'll receive a 1099 form if you pay US taxes and earn crypto gains over $600.

You must link a valid bank account to your Coinbase account in order to sell crypto. We use the IMPS (Immediate Payment Service) bank transfer system as the payment method to transfer funds to your bank account.

Is it safe to link Coinbase to bank account? ›

At Coinbase we go to great lengths to keep all of your sensitive information safe. Account numbers and routing numbers are stored using bank level AES-256 encryption on our servers. In addition, all traffic is encrypted in transit to prevent third parties from eavesdropping on your connection.

If you're having difficulty successfully uploading a passport, driver's license, or state ID (US customers), please make sure: There is no glare on the document. The image is bright and well lit. The image is clear and all borders of the document are fully visible.

The answer is YES! Through an Individual Taxpayer Identification Number or (ITIN), people who do not have social security numbers can open investment accounts. Brokerage companies such as Vanguard, Charles Schwab, and Fidelity allow individuals with ITINs to open investment accounts. Read below to learn more.

Because the IRS considers cryptocurrency trading to be a taxable event, ALL crypto brokers must acquire your SSN in order to report your trading activity to Uncle Sam. There is no exception. Anyone who tells you differently is deceiving you. And you'll end up paying the price for it.

So basically, anybody can invest in cryptocurrency and it doesn't matter where you are or where you are from since buying and selling Bitcoin is not considered a form of employment. The profits and losses you make trading cryptocurrency are considered capital gains and capital losses.