Consumer Protection Tuesday: AI Scams Are Here—Here’s How to Outsmart Them

This post is part of a weekly Tuesday series at Coinbase about the latest consumer protection and security measures for crypto owners.

At Coinbase, we’re on a mission to help update the financial system to make it safer and more secure. While only 0.14% of blockchain transactions are used for illicit activity, and cash remains the preferred medium for illegal transactions, crypto security is always a top priority. Coinbase maintains a robust compliance program, which includes Know Your Customer (KYC) checks, sanctions screenings, suspicious activity reporting, and strong law enforcement partnerships to detect and prevent illicit activity on our platform.

Why AI Scams Are So Dangerous

The scams of yesterday relied on typos, generic scripts, and sheer luck. Today’s scams, powered by AI, are tailored to your interests, mimic people you know, and arrive in formats so convincing they can be difficult to question.

AI tools can:

• Clone your loved one’s voice from just a few seconds of audio.

• Write emails that sound like they’re from your manager or bank.

• Create realistic fake videos.

• Launch thousands of personalized attacks at once.

Scammers are no longer working alone—they’re using machines trained to deceive at scale.

Four Common AI-Driven Scams You Should Know

1. Voice Cloning and Family Impersonation

Imagine getting a call from your child or sibling asking for urgent help. The voice sounds exactly like them, but it’s not.

How it works: AI mimics the voice of a loved one using publicly available video or audio. The impersonator asks for emergency funds to be sent via crypto, wire transfer or gift cards.

Protect yourself: Verify before you act. Hang up and call the person back directly. Never send money based on an incoming phone call alone.

2. Phishing Emails That Actually Fool You

These aren’t riddled with grammar mistakes or odd formatting. Today’s phishing attempts look and read like legitimate messages from your workplace, favorite online store, or even your financial advisor.

How it works: AI writes natural-sounding emails that trick you into clicking malicious links or downloading infected files.

Protect yourself: Don’t click—verify the sender. Go to the official website instead of using embedded links. Use email filters and report suspicious messages.

3. Fake Customer Support via Chatbots

You visit what seems like a legit company website, and a support chatbot pops up. It offers to help you recover an account or troubleshoot an issue.

How it works: Scammers deploy AI bots trained to mimic the tone and knowledge of real support reps. These bots collect your personal info and direct you to fake portals.

Protect yourself: Only use official apps or support channels. Avoid clicking on support links from search engines or emails.

4. Mass-Produced, Customized Attacks

AI now makes it easy to launch massive volumes of scams in seconds, complete with fake identities, documents, and storylines tailored to each target.

How it works: Scammers use AI to generate convincing scam scripts, fake credentials, and even online profiles to appear legitimate.

Protect yourself: Use multi-factor authentication (MFA) and password managers. These tools make it much harder for scammers to access your accounts, even with your login credentials.

Stay Ahead with Smarter Habits

AI may be making scams more sophisticated, but the core defense remains the same: awareness, caution, and verification. Here are a few simple habits to help you outsmart AI-powered fraud:

• Pause before reacting. Urgency is a hallmark of scams.

• Talk to someone you trust before sending money.

• Use layered security like MFA, password managers, and device encryption.

• Keep learning. New scams pop up fast. Stay informed with trusted sources.

We’re Watching the Threats So You Don’t Have To

At Coinbase, we’re actively monitoring the evolving threat landscape, including AI-powered scams. We partner with law enforcement, regulators, and fellow tech platforms to identify threats early and protect our users from emerging risks.

The future of scams is evolving—but so are our defenses. Stay alert, stay informed, and help spread awareness to protect those around you.