Coinbase warns of rising holiday scams targeting consumers

Coinbase is warning that scam activity is increasing across platforms during the holiday season, citing new research on shopping fraud and urging consumers to watch for specific red flags, the company said in a post that is part of its weekly Tuesday consumer protection series.

The company said it is focused on security for crypto owners as part of its mission to “help update the financial system to make it safer and more secure,” and noted that only 0.14% of blockchain transactions are tied to illicit activity while cash remains the main medium for illegal transactions.

According to the post, 31% of Americans say they have been targeted by a holiday shopping scam and more than half of those people report losing money, while 33% of U.S. adults have given or received a gift card with a zero balance, often due to tampering. Coinbase added that 62% of consumers admit they are likely to jump on a holiday deal without checking the source, and 39% say they experienced fraud after buying through a social media ad, up from 35% a year earlier.

The company cited Visa data showing a 284% rise in fake and spoofed merchant sites last fall compared with the summer, with such fake stores accounting for 50% of scams on social media. It highlighted warning signs including deals that appear unusually cheap, unfamiliar brands, gift cards with no balance, delivery phishing texts asking for clicks or personal data, and AI-powered tools being misused to create scam websites, deepfake chats and fake product reviews, advising shoppers to verify retailers, use credit cards and go directly to official sites to track orders.

Coinbase said it is “proud to help lead the charge in consumer education, fraud prevention, and secure crypto storage,” and urged consumers to make cyber safety part of their holiday preparations so that “a little caution goes a long way in making sure your holiday is joyful and scam-free.”

The recap

• Coinbase reports a surge in holiday scam activity across platforms.
• 31% of Americans targeted by holiday scams; social ad fraud rising.
• Company urges verification of deals, retailers and delivery communications.