Consumer Protection Tuesday: How to Protect Yourself from Pig Butchering Scams and Online Fraud

At Coinbase, we’re working hard to help update the financial system, and make it more safe and secure. While only 0.34% of blockchain transactions are used for illicit activity, and cash remains the preferred medium for illicit transactions, crypto security is always a top priority. Coinbase maintains a robust compliance program, which includes KYC checks, sanctions screenings, suspicious activity reporting, and strong law enforcement partnerships to prevent and detect illicit activity on our platform.

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The internet has made life more connected, but it’s also created new opportunities for scammers. One of the more devastating scams to emerge recently is known as "pig butchering." This type of social engineering scam involves a scammer building a long-term relationship with the target, typically through social media, chat apps, or even dating platforms, only to eventually trick them into transferring large sums of money under the guise of an investment opportunity. Once the target is fully “fattened up,” the scammer vanishes, leaving them financially devastated.

This is not a crypto-only issue—it affects all areas of tech, from messaging apps to financial platforms. That’s why Coinbase has teamed up with industry leaders, such as Meta, Match Group, and Kraken, to launch the Tech Against Scams Coalition. Together, we’re fighting back against scammers and protecting consumers. But even with this collaboration, your best defense is education and vigilance.

Here are some common-sense tips you can use to protect yourself from scams online:

1. Be Skeptical of Unsolicited Messages

Whether it’s on social media, dating apps, or even in your email inbox, be cautious about unsolicited messages from people you don’t know. Scammers are skilled at building trust and may seem friendly, but their goal is to get you to share personal information or send them money. If a stranger quickly becomes too friendly or starts discussing financial matters, it’s a red flag.

2. Avoid Unverified Investment Advice

Never take investment advice from someone you’ve just met online, especially if they recommend investing in something you’re not familiar with. Scammers often promise quick, guaranteed returns to lure people into sending money. Always seek advice from trusted financial advisors and use well-known, reputable platforms.

3. Don’t Share Personal or Financial Information

Never give out your personal or financial information to someone you’ve only met online. This includes bank details, crypto wallet seed phrases, passwords, and even social security numbers. Legitimate financial institutions will never ask for this information through casual online conversations.

4. Use Secure and Reputable Platforms

When managing your finances, whether it’s online banking or cryptocurrency, make sure you’re using platforms with strong security features. Always enable two-factor authentication (2FA) and monitor your account for any suspicious activity. If you’re unsure about a platform, do your research—read reviews, check security protocols, and ask for recommendations from trusted sources.

5. Talk to Trusted Friends or Family

If someone online is pressuring you into making financial decisions, pause and talk to someone you trust. Scammers often create a sense of urgency to make you act quickly. Discussing the situation with someone you know can provide clarity and help you avoid a costly mistake.

6. Educate Yourself and Stay Informed

Scammers are constantly evolving their tactics, so staying informed is key. Regularly check trusted sources, like Coinbase’s help center or industry partners like the Global Anti-Scam Organization (GASO), to learn about the latest scam techniques and prevention tips.

7. Trust Your Instincts

If something feels off, it probably is. Scammers often rely on social pressure and emotional manipulation to get what they want. Trust your instincts—if something feels too good to be true, take a step back and reassess.

Stay Vigilant and Protect Your Loved Ones

The more we share knowledge, the harder it becomes for scammers to succeed. Please share this blog with your friends, family, and loved ones to help protect them from falling victim to these types of scams.

The internet can be a safe and valuable place for everyone, but it requires vigilance and smart practices. Together, through education and awareness, we can make it harder for scammers to prey on people online.