Scammers Impersonate Law Enforcement in Crypto Fund Transfer Scam

Consumer Protection Tuesday: a recurring series at Coinbase aims to educate users about the latest security measures for crypto owners. In this installment, Coinbase warns of a resurgent scam where scammers impersonate police, federal agents, or embassy officials to pressure victims into moving their funds to a 'safe' wallet controlled by the scammer.

The scam starts with a call from someone claiming to be law enforcement, who accuses the victim's identity or bank account of being linked to money laundering. The caller creates urgency and fear, warning of arrest or legal action if immediate action is not taken.

The scammer then directs the victim to open a Coinbase account, share their screen, and move funds into a 'safe' wallet controlled by the scammer. Real law enforcement never asks victims to move their own money as part of an investigation, nor do they demand immediate action or threaten arrest.

Coinbase advises users to hang up immediately if this happens, verify through official channels, and report the incident. The company's robust compliance program includes Know Your Customer (KYC) checks, sanctions screenings, suspicious activity reporting, and strong law enforcement partnerships to detect and prevent illicit activity on their platform.