Coinbase warns of a worrying trend: Gen. Z Become more vulnerable to online scammers. The cryptocurrency exchange published a blog post on October 8 in which it identified four important threats that young users should be aware of. These consist of recovery schemes, fake websites, romance scams, and social media scams.
Coinbase warned Due to the increasing growth of digital currencies, users are responsible for their assets and therefore do not have any protection like that of the traditional financial system.
Recently, scams on social media have begun to rise, targeting unsuspecting people, especially those who have little knowledge about cryptocurrencies. Ironically, even those who deal with cryptocurrencies still fall into the trap.
Coinbase: Beware of the Trap
Some of the most serious risks come through social media platforms like TikTok and Instagram, according to Coinbase. Users encounter scammers posing as famous celebrities or through other fake profiles where they make connections with gullible users before going ahead to scam them. They offer 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 romantic relationship online. This led to their victims being scammed out of nearly $700,000. Coinbase is warning users to be careful about spam prompting them to invest in it Cryptocurrency. The company also reminds its users to verify the identities involved in any online communications.
Image: Techfunnel
The dangers of romance scams
There’s still another big problem: romance scams, as people sometimes call them romance scams “slaughtering pigs” In the slang. In this type of scam, scammers meet their victims via dating apps or social media sites to take advantage of their trust and make money.
A US citizen recently filed a complaint against these scams, which can pose a real danger to people who fall for them. They lost $2.1 million in Bitcoin after falling for a scam cryptocurrency exchange website. Perhaps the worst thing about these scams is their ability to manipulate emotional vulnerabilities under the guise of establishing real relationships.
Combating fraudulent activities
The numbers are staggering: in 2023 alone, more than 67,000 online scams were recorded, with an average loss of $3,800 per victim. Coinbase encourages customers to not only be alert, but also to report suspicious activity to legal authorities and platforms like theirs.
Raising awareness is crucial to prevent people from falling victim to similar scams. As cryptocurrency ownership increases among younger generations, the responsibility that comes with it also increases.
Featured image from Pixabay, chart from TradingView