Consumer Protection Tuesday: How Our Favorite Apps Are Responding to Financial Scams

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.

Scams Start Where People Gather Online

From romance scams to deepfake livestreams, bad actors are using every digital communication channel available to target users, especially in the context of crypto and financial transactions.

Whether it's a fake investment opportunity sent through a messaging app, a livestream falsely promising free Bitcoin, or a scammer impersonating a public figure on social media, one thing is clear: Platforms are now central to both the problem and the solution.

Tech companies are increasingly recognizing their role in consumer protection. In response, many are rolling out new tools and policies aimed at reducing fraud, while collaborating with law enforcement and industry peers to keep users safe.

How Platforms Are Responding

1. Strengthening Moderation and Detection

Platforms are investing heavily in tools to detect and remove fraudulent content, often before users ever see it. These include:

• Machine learning models trained to spot scam patterns in posts, ads, messages, and livestreams.

• Automated takedown systems for suspicious links and impersonator accounts.

• Stricter verification requirements for users who want to livestream, post ads, or create large groups.

2. Cracking Down on Impersonation and Deepfakes

As generative AI becomes more accessible, scammers are using it to impersonate public figures, company executives, or even loved ones in increasingly convincing ways.

In response, many platforms have introduced:

• Synthetic media disclosure policies, requiring users to label altered content.

• Deepfake detection tools aimed at identifying manipulated videos and audio.

• Faster impersonation reporting mechanisms to protect users and brands.

3. Improving Ad and Group Controls

Many scams spread through deceptive ads or fraudulent private groups. To counteract this, platforms are:

• Requiring verification and disclosure for financial or investment-related ads.

• Flagging suspicious groups promoting crypto “pump-and-dump” schemes or fake token sales.

• Restricting the ability to send mass invites or links from new or unverified accounts.

4. Collaborating Across Industries

No single company can tackle scams alone. That’s why platform providers, crypto companies, and financial institutions are now working together to share intelligence and standardize best practices.

At Coinbase, we co-founded the Tech Against Scams Coalition, a cross-industry group that includes social media platforms, fintech companies, and dating apps. Together, we’re focused on:

• Sharing threat data to identify and remove bad actors more quickly.

• Educating users through coordinated campaigns.

• Developing new tools to detect and disrupt fraud at scale.

What You Can Do Right Now

While platforms are working to keep users safer, individual awareness is still your strongest line of defense. Here's how to protect yourself:

• Don’t trust online financial requests, especially if they involve pressure to act fast.

• Be skeptical of unsolicited messages offering investment tips or asking for your help.

• Use platform tools to report suspicious messages, ads, or accounts.

• Talk to someone you trust before taking financial action online.

Shared Responsibility, Safer Communities

Tech platforms are stepping up in meaningful ways to fight crypto scams, but the threat is still evolving. Scammers are opportunistic, creative, and often one step ahead of traditional defenses.

That’s why continued education, smarter tools, and industry collaboration are all essential. At Coinbase, we’ll continue to work alongside other tech leaders to raise awareness and keep crypto users safe.