Consumer Protection Tuesday: Don’t Let Scammers Steal Your Joy - This Season’s Top Fraud Trends

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.

‘Tis the Season for Fraud

This holiday season, scam activity is surging across nearly every platform and channel. Here's what the latest research shows:

• 31% of Americans say they've been targeted by a holiday shopping scam, and over half of those targeted have fallen victim.

• 33% of U.S. adults have given or received a gift card with a zero balance, often due to scam tampering.

• 62% of consumers admit they’re likely to snag a holiday deal on impulse without verifying the source.

• 39% of consumers reported experiencing fraud after buying something through a social media ad, a noticeable rise from last year (35%).

Top Red Flags to Watch For

Fake Storefronts

Last fall, Visa identified a 284% increase in fake and spoofed merchant sites compared to the summer months. These fake stores are taking over social media, making up 50% of scams on social platforms.

Red Flag: The deal looks too good to be true, or the brand isn’t well-known. What To Do: Use credit cards, and verify unfamiliar shops by searching for independent reviews.

Tampered Gift Cards

Scammers tamper with cards on store racks, draining funds as soon as they’re activated.

Red Flag: You receive or buy a gift card with no balance. What To Do: Buy directly from brands or sealed cards at checkout—not from open retail displays.

Delivery Texts with Suspicious Links

With package theft and holiday shipping delays, scammers send phishing texts posing as delivery updates.

Red Flag: You’re asked to click a link or confirm personal information. What To Do: Go directly to the official retailer or carrier site to track orders.

AI-Generated Shopping Scams

Tools like ChatGPT are now being misused to generate scam websites, deepfake chats, and fake product reviews.

Red Flag: A chatbot sends you to an unfamiliar site or creates a gift idea that links to a sketchy page. What To Do: Always cross-check new shops or deals before buying.

Make Cyber Safety Part of Your Holiday Prep

Scammers are more sophisticated than ever—and holiday distractions can make anyone vulnerable. But knowing the stats and spotting the red flags puts you ahead of the game.

Before you click “buy,” remember this list. A little caution goes a long way in making sure your holiday is joyful and scam-free.

At Coinbase, we’re proud to help lead the charge in consumer education, fraud prevention, and secure crypto storage.