Consumer Protection Tuesday: Who’s Behind All These Scams? Inside The World of Organized Fraud
Tl;dr: Scams today are no longer isolated incidents committed by lone fraudsters. They’re often run by large, organized criminal groups operating like professional businesses. These scam networks use technology, social engineering, and global coordination to defraud victims out of billions each year. Learn how they work—and how to protect yourself and your family.
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 under 1% 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 Billion-Dollar Scam Industry
It’s time to update our understanding of scams. What used to be seen as a rogue email or sketchy phone call is now part of a much larger operation. The FBI, FTC, and international law enforcement have all confirmed that many modern scams, from impersonation scams to long-term investment scams, are run by organized criminal groups with hundreds, or even thousands, of employees. These networks generate billions of dollars by exploiting financial systems and human psychology alike.
In many cases, victims are targeted not by a single individual, but by teams of scammers trained in manipulation, technology, and moving money. These are not random crimes. They’re optimized attacks.
Unmasking the Criminal Playbook
Scam operations often follow the structure of a legitimate business, complete with specialized departments, office hours, and employee quotas. Here’s how these groups typically operate:
1. Global Call Centers and “Scam Compounds”
Many large fraud networks operate out of scam compounds in Southeast Asia, Eastern Europe, and West Africa. These may look like ordinary office buildings, but are in fact hubs for coordinated cybercrime.
Recruitment and training: Workers are coached in psychological tactics, fake scripts, and platform impersonation.
High-pressure environments: Teams often work under quotas, tracked by performance dashboards, similar to legitimate sales jobs.
Use of tech tools: Operations rely on phishing kits, spoofed numbers, deepfake audio, and cloned websites to appear credible.
2. Teenage Crime Rings and Digital Clout Gangs
While many scams originate overseas, domestic organized crime groups are also growing rapidly. One recent exposé by content creator Tommy G, titled “Inside a Teenage Crime Empire (This is a Billion Dollar Theft Ring),” offers an eye-opening look into the underground digital scam world run by “The Com”.
Made up of teens and young adults, The Com coordinates online through Discord, Telegram, and gaming platforms.
Members run social engineering schemes like fake Coinbase support calls to drain victims’ wallets.
Some members have reportedly made and laundered millions in stolen crypto, with little regard for legal or personal consequences.
The Com is one of many examples showing how scam culture is expanding among younger digital natives, blending fraud and clout.
3. Cybercrime-as-a-Service
Just like software-as-a-service (SaaS), cybercrime groups now offer plug-and-play kits for scam operators:
Phishing websites that look like real crypto exchanges or banking apps.
Fake customer support scripts designed to mimic Coinbase, PayPal, or government agencies.
Deepfake voice and video software to impersonate loved ones or professionals.
These tools are sold or rented to scammers online, turning fraud into a scalable business.
4. Crypto Mule Networks
Some scams don’t stop at one victim. Once someone has been defrauded, they may be tricked into unknowingly helping move stolen funds across wallets, becoming a “money mule.”
Scammers create a fake investment or job opportunity.
Victims are manipulated into receiving and sending funds.
This helps the scammers launder funds across jurisdictions, making them harder to trace.
5. Human Trafficking and Forced Labor in Scam Compounds
A more recent and heartbreaking development is the use of forced labor in scam compounds. Victims of trafficking are being coerced to run online scams as part of transnational organized crime rings. These operations are well-funded, violent, and tech-savvy.
Workers are forced to use fake dating profiles, tech support scripts, and stolen identities.
Refusal often leads to threats or physical abuse.
International agencies are working to dismantle these networks, but they continue to operate in lawless zones.
How to Protect Yourself from Organized Scam Rings
Scammers have mastered the art of manipulation at scale. But you can protect yourself and your loved ones by knowing the signs and staying alert.
Key protections include:
Use strong, unique passwords and multi-factor authentication (MFA).
Beware of unsolicited calls or texts claiming urgent action is needed.
Never share security codes or crypto wallet access—even with someone claiming to be from Coinbase.
Double-check URLs and support contact info directly from the official site or app.
Talk to someone you trust before making large financial decisions, especially under pressure.
Scams have become a global business targeting people like you. But knowledge is power. The more we understand how these groups operate, the better we can protect ourselves and our communities.
At Coinbase, we believe in building a safer financial system through transparency, awareness, and advanced security measures.
Stay alert, stay informed, and always reach out if something doesn’t feel right.
