Bitrabo Editorial
Coinbase is raising an alarm about a troubling trend: Gen Z appears to be increasingly vulnerable to online scams. In a blog post dated October 8, the cryptocurrency platform highlighted four major types of threats young users need to be aware of: recovery schemes, fraudulent websites, romance scams, and social media fraud.
Furthermore, Coinbase pointed out that due to the rapid rise of digital currencies, users are responsible for their assets, unlike traditional banking systems that offer protections.
Recently, scams on social media have surged, particularly targeting individuals who are unfamiliar with cryptocurrency. Ironically, even those with some crypto experience have been caught off guard.
Coinbase: Stay Aware
According to Coinbase, significant threats are prevalent on social media platforms like TikTok and Instagram. Users are coming across scammers posing as well-known celebrities or using fake profiles, establishing contact with unsuspecting individuals, only to deceive them later. These scammers present enticing investment opportunities that turn out to be fraudulent.
For instance, scammers in Vietnam recently created a false online romantic scenario, resulting in victims being defrauded of nearly $700,000. Coinbase urges users to stay alert against unsolicited messages urging them to invest in cryptocurrency. The company emphasizes the importance of verifying the identities of individuals in any online interactions.
The Risks of Romance Scams
Romance scams present another significant challenge; sometimes referred to as “pig butchering” in slang. In these scams, fraudsters develop relationships with their victims via dating apps or social media, exploiting their trust for financial gain.
A recent case involved an American victim who lost $2.1 million in Bitcoin after falling for a bogus crypto exchange website. Such scams are particularly troubling because they exploit emotional vulnerabilities while masquerading as genuine connections.
Combating Fraudulent Activities
The statistics are alarming: in 2023 alone, over 67,000 internet fraud cases were documented, with the average victim losing about $3,800. Coinbase recommends that users remain vigilant and report suspicious activities to law enforcement or platforms like theirs.
Increasing awareness is vital in preventing individuals from becoming victims of these scams. As digital currency ownership grows among younger generations, so does the accompanying responsibility.
Featured image from Pixabay, chart from TradingView