Coinbase recently issued a warning about the increasing number of online scams targeting younger generations, particularly Gen Z. According to a blog post released on Oct. 8, Coinbase highlighted four main online threats that Gen Z individuals should be cautious of, which include social media fraud, romance scams, fake websites, and recovery schemes.
The cryptocurrency platform emphasized the importance of users taking personal responsibility for securing their digital assets. Unlike traditional banks that offer a certain level of security, individuals who own cryptocurrencies have direct control over their assets, making them both their own protectors and potential security risks.
One of the significant scams that Coinbase highlighted is social media fraud, where scammers create fake profiles or impersonate well-known personalities on platforms like Instagram and TikTok. These fraudsters often present seemingly legitimate investment opportunities to unsuspecting users, leading them to financial losses. Coinbase advised users to be wary of unsolicited messages from strangers promoting crypto investments.
In a recent incident in Vietnam, five suspects involved in a crypto fraud network used social media to establish fake romantic relationships with victims and convinced them to invest in a fraudulent platform, resulting in a total loss of over 17.6 billion Vietnamese dong ($700,000).
Coinbase also pointed out the rise in romance scams, where scammers befriend victims under the guise of a potential romantic partner to exploit them financially. These scams usually take place on dating apps or social media platforms. Additionally, scammers utilize fake websites to deceive victims into providing personal information or sending funds. A U.S. citizen recently filed a lawsuit after losing $2.1 million in Bitcoin due to a pig butchering scam involving counterfeit crypto exchange websites, with the scammers operating from Southeast Asia.
According to Coinbase, there were over 67,000 reported online scams in 2023, with a median loss of $3,800. The platform emphasized the importance of raising awareness and reporting any suspicious activity to prevent others from falling victim to similar scams. Coinbase encouraged users to report scams to law enforcement and platforms like Coinbase to combat cybercrime effectively.
As cryptocurrency ownership comes with responsibilities, Coinbase’s message to Gen Z is crystal clear: remain vigilant, understand the risks involved, and work together to safeguard the community against fraudulent activities. By staying informed and proactive, younger users can protect themselves and others from falling prey to online scams.
