Consumer Protection Tuesday: How to Talk to Your Parents About Money Safety
Tl;dr: Talking with your parents about their financial wellbeing can feel awkward, but it may be one of the most important conversations you have. As scammers increasingly target older adults with sophisticated tactics, open and judgment-free discussions can help protect your family's savings and digital assets from fraud.
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 Most Important Scam Prevention Tool Might Be a Conversation
Older adults are increasingly being approached through phone calls, text messages, emails, social media, and messaging apps by cybercriminals pretending to be government officials, bank employees, tech support representatives, investment professionals, or even relatives in need of help. Many of these scams create a false sense of urgency, pressuring victims to act before they have time to think.
That's why one of the most effective ways to reduce fraud is talking openly with the people you care about.
A simple conversation today can prevent a devastating financial loss tomorrow.
Five Conversations Worth Having
1. Normalize Talking About Scams
Many scam victims feel embarrassed after being targeted, which can prevent them from asking for help.
Let your parents know that today's scams are highly sophisticated and designed to trick even the most savvy consumers. Criminals use spoofed phone numbers, convincing websites, AI-generated voices, and fake identities to appear legitimate.
Eliminating the stigma and speaking about scam experiences will help others identify potential scams before it’s too late.
2. Review the Most Common Red Flags
Walk through the warning signs together.
Scammers often:
Create urgency by claiming an account has been compromised.
Tell victims to keep the situation secret.
Foster online relationships that can feel real.
Ask for payment through cryptocurrency, wire transfers, gift cards, or cash.
Pretend to represent trusted organizations like banks, law enforcement agencies, or technology companies.
Promise guaranteed investment returns or exclusive opportunities.
If someone demands immediate payment or asks you not to tell anyone, pause the conversation and verify the request independently.
3. Implement a "Phone a Friend" Rule
Before sending money, moving investments, or sharing sensitive financial information, make it a rule to call a trusted family member or friend first.
Legitimate organizations won't object if you take time to verify a request. Scammers, on the other hand, work hard to isolate their victims to prevent you from seeking a second opinion and may become more aggressive when you hesitate.
If someone pressures you to act immediately or tells you to keep a financial request secret, take a beat. Even a brief conversation about the interaction can provide a fresh perspective and help identify red flags that are easy to overlook when you're feeling pressured or emotional.
4. Create a Family Code Word
Families should agree on one simple safety habit: create a unique code word or phrase that only close family members know.
Scammers are increasingly using AI-generated voices and emotional stories to impersonate loved ones in distress. A caller may claim to be a child or grandchild who has been in an accident, arrested, or stranded while traveling and urgently needs money.
A family code word provides an extra layer of verification. Be sure to choose a code word that isn't easy to guess or publicly available on social media, and remind family members never to share it outside the family.
When in doubt, hang up and call your loved one directly using a trusted phone number before taking any action.
5. Make Security Part of Everyday Life
The best protection isn't a single conversation—it's an ongoing one.
Consider checking in every few months to discuss:
New scams making headlines.
Password and account security.
Device software updates.
Any unusual calls, texts, or emails they've received.
These conversations become easier over time and help build confidence instead of fear.
A Five-Minute Conversation That Could Save Thousands
Imagine your parent receives a phone call from someone claiming to work at their bank.
The caller says suspicious activity has been detected and that their money is at risk. To "protect" their savings, they're instructed to transfer funds to a high-security wallet provided over the phone.
If this is the first time they've heard of this type of scam, they may panic.
But if you've already talked about these scams, your parent recognizes the warning signs, hangs up, calls the bank using the number on the back of their card, and avoids becoming a victim.
Awareness changes outcomes.
Financial scams continue to evolve, but education remains one of the strongest defenses.
Talking openly about financial safety helps remove stigma, builds confidence, and reminds loved ones that they never have to make important financial decisions alone.
The next time you call your parents, consider spending five extra minutes talking about money safety. It may become one of the most valuable conversations you have all year.
