As one of the biggest cryptocurrency exchanges, Coinbase shares how Gen Z can help to stop and spot scammers. Based on the data from Coinbase, Gen Z experienced the highest average financial losses due to scams because this generation has grown up online and gives a criminal chance to reach potential victims.

As Coinbase’s mission is to prevent illegal activities, by following these tips, you can protect yourself from scammers.

Avoiding Social Media Fraud

Scammers often create fake profiles on social media, pretending to be experts or mimicking reputable figures. They send cold messages like “Hi, how are you?” and offer investment opportunities that seem legitimate but aren’t. Instagram and TikTok are common targets for these scams, where fake tokens or banned exchanges are promoted to deceive users.

Stay cautious when meeting new people online. Avoid any investment offers from strangers, as they are likely scams. Learn to recognize fake email addresses, suspicious job offers, random tokens, and unsolicited messages. 

Read more: Satoshi Nakamoto, Bitcoin Creator Identity Revealed?

Identifying Romance Scams

Romance scams, also known as “pig butchering” scams, typically involve strangers using fake profiles to build trust with their targets. These scammers might send texts or WhatsApp messages, pretending to accidentally message you and initiating conversations. They’re increasingly using AI-generated content to make their profiles appear real.

Be cautious of profiles with few followers and abrupt messages. You can report and block these scammers. Authorities may be able to track their phone numbers or IP addresses to bring them to justice.

Detecting Fake Websites

Scammers often use fake websites or spoofed URLs that resemble real platforms. They also send text messages with fake promotional links leading to fraudulent accounts and exchanges designed to steal funds. Recovery scams are another danger, where scammers target victims of previous fraud, offering to recover their lost funds in exchange for crypto or gift cards.

Check website visuals and URL details carefully to spot fakes. Fraudulent sites often have poor design quality or subtle differences in their URLs.

Read more: Telegram’s New Feature “Gifts”, Soon Can Be Converted to NFT

Raising Public Awareness

In 2023, over 67,000 scams were reported, with the average loss being $3,800. Some victims lost over $1 million. Additionally, 10.3% of people surveyed by the BBB reported falling for a scam three or more times, an increase from 8.4% the previous year.

Everyone can help prevent scams by spreading awareness. Most victims say they can identify scams better after being targeted once. Report any suspicious accounts or messages. If a reputable company’s name is being misused by scammers, inform the company right away.