Consumer Protection Tuesday: Your 2025 Fraud Prevention Checklist: How to Stay Safe Online and Off

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.

Protect Yourself with These Essential Fraud Prevention Steps

In today’s fast-moving digital economy, scams are more common, more sophisticated, and more damaging than ever. Whether it’s a bogus investment opportunity, an urgent message from a fake government official, or a spoofed crypto wallet address, even the savviest users can get caught off guard. That’s why it’s crucial to build strong habits around security and fraud prevention.

Use the checklist below to strengthen your defenses and stay one step ahead.

General Protection

Start here—these are the foundational steps everyone should take, regardless of how tech-savvy you are:

• Use strong, unique passwords for each of your accounts and store them securely in a reputable password manager.

• Enable multi-factor authentication (MFA) wherever possible—authenticator apps offer better protection than SMS.

• Keep your software updated—this includes your operating system, browsers, apps, wallets, and antivirus software.

• Review account activity regularly for unusual logins or transactions (especially for banking, email, payment platforms, and crypto exchanges).

• Set up alerts on your bank and credit accounts to notify you of large or unusual transactions.

Tip: Think of this as your home security system. Each layer adds more protection from digital intruders.

Financial Scam Protection

Fraudsters are constantly finding new ways to steal your money. These tips help protect your financial assets:

• Never share your PINs, CVVs, or one-time codes—your financial institution will never ask for them.

• Always verify the identity of merchants or sellers before wiring money or sending funds.

• Avoid public Wi-Fi for accessing financial accounts—use a trusted VPN if needed.

Remember: If someone pressures you to act fast with your money, it’s probably a scam.

Social Engineering Protection

Social engineering is the art of deception. Scammers often manipulate emotions to gain your trust:

• Pause before responding to urgent requests, especially those asking for secrecy or fast action.

• Verify identities independently—don’t trust caller ID or email headers alone. Call back using a verified number or website.

• Avoid clicking unsolicited links or downloading attachments from emails, texts, or DMs.

• Look closely at sender addresses and URLs—small misspellings are often the giveaway.

• Train yourself to recognize manipulation tactics like fear, greed, urgency, or flattery.

Social engineering is powerful because it feels personal. Awareness is your best defense.

Crypto Scam Protection

Stay secure with these blockchain-specific best practices:

• Use only trusted exchanges and wallets—do your research before sending funds anywhere.

• Store long-term crypto holdings in cold wallets (like hardware wallets), not online exchanges.

• Double-check wallet addresses before sending—scammers can spoof or replace them using malware.

• Ignore promises of “guaranteed returns”—this is one of the oldest crypto scam tactics in the book.

• Never share your seed phrase or private keys—no legitimate platform will ever ask for them.

• Consider multi-sig wallets or custodial services for large holdings.

• Be skeptical of airdrops, giveaways, and impersonators—especially on social media platforms like X and Telegram.

If it sounds too good to be true, it is. Crypto security starts with skepticism.

Response & Recovery

Even with the best precautions, scams can still happen. Preparation is key to bouncing back quickly:

• Know how to report fraud—whether it’s your bank, credit bureau, the FTC, or your crypto exchange.

• Act fast if you’re compromised—freeze your accounts, transfer your funds, and reset passwords immediately.

• Monitor your credit report at least once a year to catch suspicious activity.

• Document everything—screenshots, emails, wallet addresses, and transaction IDs can be crucial for recovery.

• Speed and detail matter. Quick action and good records increase the chances of recovery.

Final Thoughts: Education is the Best Security Tool

At Coinbase, we believe that informed users are empowered users. That’s why we’re committed to helping you protect yourself, your assets, and your loved ones from digital threats. Share this checklist with your family and friends. Use it to start a conversation. Talk about scams before they happen.

Fraud prevention doesn’t have to be complicated—but it does have to be consistent.

Stay alert. Stay informed. Stay protected.