Consumer Protection Tuesday: How Scammers are Using AI to Target Fintech Customers

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.

The New Face of Fraud

Until recently, scam emails and sketchy messages were relatively easy to spot. But AI has changed the game. Today’s scams wear a human face, speak with emotional urgency, and sound just like someone you trust.

Whether it’s a video call from a “CEO” authorizing a wire transfer or a loved one’s voice pleading for help, these scams don’t just trick the eye or ear, they exploit trust. And for fintech users, where speed and digital access are everything, the risks can escalate quickly.

Here’s how scammers are weaponizing AI across financial platforms and services, and how you can outsmart them.

AI-Powered Phishing Messages

Phishing scams used to be riddled with typos and odd grammar. Now, AI models can generate emails and text messages that are grammatically flawless, context-aware, and convincingly personal.

You might receive a message that looks exactly like a security notification from your bank or crypto wallet provider. It might reference your recent transactions or tell you that your account is locked due to suspicious activity. The language feels familiar. The urgency feels real.

But it's fake.

Tactics include:

• Personalized subject lines with your name or account info.

• Phrases like “urgent action required” or “your account has been compromised.”

• Clickable links that lead to cloned login pages or malware.

How to stay safe:

• Check the sender’s address closely. Scam emails often come from domains that look nearly identical to the real thing (e.g., coinbsae.com).

• Be wary of emotional manipulation. If a message is trying to make you feel panicked, it’s likely trying to trick you.

• Never click on a link if you’re unsure. Go directly to the app or website to verify any alerts or messages.

Fake Customer Service Scams

Scammers are increasingly setting up fake customer support pages that look like legitimate fintech websites. They even advertise them on search engines. When a user lands on one of these sites and opens a chat, they’re connected with an AI-powered bot that seems helpful—but it’s anything but.

These fraudulent bots might greet you by name, ask about a recent transaction, or appear to troubleshoot your issue. But their real aim is to collect sensitive information—passwords, seed phrases, and even full access to your crypto wallet.

A typical scam goes like this: You search for “[My bank] customer support,” click the top result (a paid ad), and land on what looks like an official page. The chatbot opens immediately, offering to help. Then it asks for your account credentials or pin to “verify your identity.” Once you comply, your assets are gone.

How to stay safe:

• Never trust support links from search results. Always type the URL directly or use your app’s help center.

• Legitimate support will never ask for your password or recovery phrase.

• If something feels off, end the chat immediately and start again from a verified source.

AI-Enhanced Tricks and Traps in Crypto

Crypto has always been a popular target for scammers—but now they’ve added a powerful new tool to their arsenal: generative AI.

Deepfake influencer videos are circulating across social platforms, “endorsing” fraudulent investment platforms or fake giveaways. Some scams go so far as to fabricate entire websites complete with fake testimonials, transaction records, and real-looking dashboards.

One recent scam involved a deepfake video of a well-known crypto influencer “announcing” a limited-time airdrop. Thousands clicked through before realizing the entire promotion was fake.

How to stay safe:

• Treat all limited-time offers and giveaways with skepticism. If it sounds too good to be true, it usually is.

• Verify influencer content by checking their official channels (Twitter, YouTube, Instagram).

• Use tools like ScamSniffer or Chainabuse to investigate suspicious links, wallets, or domains.

How Fintech Is Fighting Back

Platforms like Coinbase are investing in cutting-edge fraud detection tools that fight AI with AI - they can use machine learning to flag suspicious behavior before it reaches the user. From behavioral analytics to biometric verification, companies are building stronger walls to keep scammers out.

But no technology is perfect. Your awareness remains a key line of defense.

Here’s what to look for in a trustworthy platform:

• Multi-factor authentication (MFA) using something you know (password) and something you are (biometrics).

• Clear, accessible support options that are easy to find on the official app or website.

• Built-in tools for reporting scams, disputing charges, and recovering accounts quickly if something goes wrong.

At Coinbase, we’ve also launched and joined industry-wide initiatives like the Tech Against Scams coalition to strengthen protections for everyone in the crypto space.

Stay Smart, Stay Skeptical

AI scams are evolving quickly—but so can you.

By learning the warning signs and staying calm under pressure, you can outmaneuver even the most convincing fraudsters. And by sharing what you know, you can help protect your loved ones and community, too.

If you ever receive a suspicious message, call, or link—pause. Verify. And when in doubt, walk away.

This is part 1 of a 3 part series on how AI is changing the landscape of fraud in fintech, and how to stay safe.