Coinbase is warning of a concerning trend: Gen Z is becoming more susceptible to online fraudsters. The cryptocurrency exchange published a blog post on October 8 that identified four significant threats that youthful users should be cognizant of. These consist of recovery schemes, phony websites, romance scams, and social media fraud.
Coinbase cautioned that because of the increased growth of digital currencies, users are liable for their assets as such do not enjoy any protection like that of a traditional financial system.
Lately, social media scams have started to rise, targeting unsuspecting people, especially those with little knowledge about crypto. Ironically, even those who’ve been dealing with cryptocurrencies still fall for the trap.
Coinbase: Beware Of The Trap
Some of the most serious risks come through social media platforms such as TikTok and Instagram, according to Coinbase. The users are encountering the fraudsters masquerading as popular celebrities or through other fake profiles where they establish contact with naive users before going on to swindle them. They provide attractive investment opportunities that turn out to be fraudulent.
As of today, the market cap of cryptocurrencies stood at $2.11 trillion. Chart: TradingView.com
For example, scammers in Vietnam recently offered a fake online romantic relationship. This led to the swindling of their victims of nearly $700,000. Coinbase warns users to remain vigilant for unsolicited messages that lead them to invest in cryptocurrency. The company also reminds its users to verify identities involved in any online connections.
Image: Techfunnel
The Perils Of Romance Scams
There is still another big problem: romance scams, which people sometimes call “pig butchering” in slang. In this type of scam, con artists get to know their victims on dating apps or social media sites in order to take advantage of their trust and make money.
An American citizen recently filed a complaint against these scams, which can be actually dangerous to the people who fall into them. They lost $2.1 million in Bitcoin after falling into a fraudulent crypto exchange website. Probably, the worst about these scams is their ability to play with emotional vulnerabilities under the guise of establishing genuine connections.
Combating Fraudulent Activities
The numbers are staggering: in 2023 alone, over 67,000 internet frauds were recorded, with a median loss of $3,800 per victim. Coinbase encourages customers to not only be on alert, but also to report questionable activity to law authorities and platforms like their own.
Raising awareness is critical for keeping people from falling victim to similar scams. As digital currency ownership among younger generations increases, so does the responsibility that comes with it.
Featured image from Pixabay, chart from TradingView