Coinbase warns Gen Z about growing online threats

Coinbase is raising awareness about the rise of online scams targeting young users, especially Generation Z.

In a blog post published on October 8, Coinbase outlined four online threats Gen Z should be aware of; these include social media scams, romance scams, fake websites and recovery schemes.

Coinbase emphasized that crypto users must take personal responsibility for securing their assets. Unlike traditional banking, where institutions provide a level of security, crypto holders directly control their assets, making them both their own security and their biggest security risk.

Social media scams

Some of the biggest scams Coinbase warns about involve social media platforms like Instagram and TikTok, where scammers create fake profiles or impersonate public figures.

Scammers often offer seemingly legitimate investment opportunities to unsuspecting users, but these offers are rarely genuine. Coinbase advises users to be wary of spam messages from strangers promoting crypto investments.

A recent example of this scam occurred in Vietnam, where five suspects involved in a crypto fraud network used social media to set up fake romantic relationships and persuade victims to invest in a fraudulent platform.

The scammers defrauded victims of over 17.6 billion Vietnamese dong ($700,000) through their scheme.

Romance scams and fake websites

Another growing threat that Coinbase mentions is romance scams, often referred to as pig slaughter scams.

Romance scams involve scammers befriending victims under the pretext of a potential love affair. These scammers pretend to make personal connections to gain victims’ trust and then exploit them financially. These schemes often appear on dating apps or social media platforms.

Scammers also use fake websites to trick victims into giving up personal information or sending money. Many of these sites imitate legitimate companies but have slight differences in their URLs.

Similarly, on October 3, a US citizen filed a lawsuit after losing $2.1 million in Bitcoin (BTC) due to a pig slaughter scam involving fake crypto exchange websites. As Coinbase warned, scammers operating in Southeast Asia used these scam sites to simulate trading and steal money from the victim.

Raising awareness and reporting scams

According to Coinbase, more than 67,000 online scams were reported in 2023, with the average loss reaching $3,800.

Coinbase emphasized that raising awareness and reporting suspicious activity can help prevent others from falling victim to similar scams. The company encourages users to report scams to law enforcement and platforms like Coinbase to help fight cybercrime.

Crypto ownership comes with responsibility, and Coinbase’s message to Gen Z is clear: Be careful, know the risks, and help protect the community from scams.