Coinbase Sounds The Alarm: Gen Z Targeted By Crypto Scams

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.