Coinbase Shares Tips to Protect From Crypto Scams

Crypto exchange Coinbase supports the Australian government’s Scams Awareness Week, emphasizing the importance of consumer education to combat fraud. Coinbase APAC’s managing director offered tips for investors to protect themselves from scams, such as verifying URLs and using two-factor authentication. “Unfortunately, bad actors have been around for centuries and are not going away anytime soon,” he noted.

Coinbase Supports Scams Awareness Initiative Amid Rising Sophisticated Fraud Schemes

Crypto exchange Coinbase has voiced strong support for the Australian government’s Scams Awareness Week, held from Aug. 26-30, emphasizing the crucial role of consumer education in combating fraud.

John O’Loghlen, managing director of Coinbase APAC, noted that while illicit activity represents less than 0.34% of crypto transactions globally, scammers are increasingly targeting specific groups, like older Australians, through sophisticated schemes. He pointed out that the transparency of cryptocurrencies makes them less appealing to criminals than traditional financial systems. In a statement to Bitcoin News, O’Loghlen provided specific guidance to Australians on protecting themselves from scams. He shared:

There are a few things Australians can do to protect themselves from scams. The first is to slow down; be patient and extra vigilant when examining urgent requests from unknown or unsolicited senders.

“Check that you’re using the correct website URL and double check that the website is legitimate,” he continued. “Look at the URLs and make sure there are no typos or spelling mistakes in the web address. Two-factor authentication also adds an extra layer of security, with hardware security keys being the most secure, followed by authenticator apps. If you think your account has been compromised, you can lock it down and contact the support team for assistance.”

Despite the low percentage of illicit crypto transactions, O’Loghlen emphasized that criminals are becoming more sophisticated in their methods. “Unfortunately, bad actors have been around for centuries and are not going away anytime soon,” he stressed.

The Coinbase managing director underscored the need for ongoing collaboration between the government and the crypto industry to protect consumers.

“During a session with the Australian Federal Police, we discussed how phishing attacks remain a persistent and commonly used scam against Australians and the considerations needed to combat these,” he detailed. “These attacks are becoming increasingly sophisticated. They are getting more specific in targeting vulnerable members of the community, including Australians 65+ years, using tactics like romance scams to convince victims to sign approval transactions allowing scammers access to move their funds from their wallets.”

What do you think about Coinbase’s advice on crypto scam prevention and consumer education? Let us know in the comments section below.

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