Leading cryptocurrency exchanges Coinbase and Kraken have joined forces with other prominent tech companies to form the “Tech Against Scams” coalition.
The alliance, which includes Meta, Match Group (parent company of Tinder and Hinge), Ripple, and Gemini, aims to collaborate and take action against the methods used by scammers to protect customers from falling victim to various types of online fraud.
TLDR
- Coinbase, Kraken, and other crypto firms have joined the “Tech Against Scams” coalition to tackle online fraud and scams, including “pig butchering” scams.
- The coalition includes prominent companies such as Meta, Match Group (parent company of Tinder and Hinge), Ripple, and Gemini.
- The group aims to share best practices, threat intelligence, and tips to protect users from falling victim to romance scams and crypto scams.
- Losses from crypto investment scams in the U.S. reached $3.94 billion in 2023, and collaboration between tech companies is seen as essential to prevent criminal activities.
- The coalition plans to educate users about common scamming tactics, equip them with tools to protect themselves, and work with law enforcement when necessary.
The formation of the coalition comes at a time when losses from cryptocurrency investment scams in the United States alone reached a staggering $3.94 billion in 2023, a significant increase from $2.57 billion the previous year, according to a report by the Federal Bureau of Investigation (FBI).
The rise in fraudulent activities has highlighted the urgent need for a concerted effort to tackle the issue head-on.
One of the primary focuses of the “Tech Against Scams” coalition is to address the growing threat of “pig butchering” scams.
These scams involve fraudsters contacting their victims through dating apps or social media, building trust, and then pitching a money-making opportunity involving cryptocurrency.
By sharing best practices, threat intelligence, and tips, the coalition aims to make it more difficult for scammers to deceive online users and protect potential victims from harm.
Yoel Roth, VP of Trust & Safety at Match Group, emphasized the importance of collaboration across industries in preventing criminal activities.
He stated,
“As we aim to make it harder for scammers to defraud online users, we will also continue investing in features to help disrupt fraud and remove scammers from our platform before they commit harm.”
The coalition recognizes that scammers often target people across multiple internet services, making it challenging for individual companies to see the full picture of malicious activity.
Guy Rosen, Meta’s Chief Security Officer, noted that the companies needed to join forces to fully tackle the problem, as scammers often rely on each company working in isolation.
To protect users from fraud on their respective platforms, the coalition members will share information and collaborate on ways to educate and protect consumers against the ever-evolving landscape of financial scams.
They will also continue to work with law enforcement, when necessary, to support investigations by sharing information about online fraud and crimes that took place on their platforms.
The formation of the “Tech Against Scams” coalition is a significant step towards combating the rising tide of online fraud and scams.
By bringing together industry leaders from various sectors, including cryptocurrency, social media, finance, and dating apps, the group aims to create a united front against bad actors who seek to exploit vulnerable individuals for financial gain.
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