Consumer Protection Tuesday: Free Tokens? Think Twice Before Clicking ‘Claim’

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.

Legitimate airdrops are a common marketing tactic in crypto, offering free tokens to early supporters or users who meet specific criteria. But with every new token launch, scammers are creating fake airdrop campaigns designed to capture sensitive data and steal funds.

A recent spike in airdrop-related phishing attacks shows how fast scammers adapt to new trends. Clicking on a single fraudulent “Claim” button could compromise your wallet, your identity—or both.

Anatomy of a Fake Airdrop

Let’s walk through how these scams typically work:

• The Launch: A new token is trending on social media. Suddenly, posts appear promoting a “free airdrop” for early users.

• The Trap: A link leads to a fake claim site. The branding and domain may look convincing.

• The Hook: Users are asked to connect a wallet or sign a transaction. Some sites request a seed phrase directly.

• The Loss: Funds disappear instantly. In some cases, scammers use smart contracts to drain wallets once signed.

5 Signs of a Fake Airdrop

• Too Good to Be True: Airdrops with enormous rewards and no eligibility criteria are often scams.

• URL Lookalikes: Fake domains with small typos or alternate spellings of the real project.

• Urgent Language: “Act fast,” “Only available today,” or “Claim now” are pressure tactics.

• No Official Source: If the project hasn’t announced it through verified channels, it’s likely fake.

• Requests for Seed Phrases: No legitimate airdrop will ever ask for your private keys or seed phrase.

Tips to Stay Safe

• Use Reputable Platforms: Only connect your wallet to trusted platforms or dApps. Always verify token claims on official project websites or their verified social media accounts.

• Double Check Before You Click: Look closely at the URL. Fake sites often use numbers or symbols to mimic letters.

• Never Share Your Seed Phrase: Not for an airdrop, not for anything. Ever.

If in doubt, don’t click. Talk to someone you trust before taking action.

Staying informed is your strongest shield. With the rise of fake airdrops, even seasoned crypto users are at risk. By staying alert, verifying sources, and understanding the mechanics of these scams, you can protect yourself and your digital assets with confidence.