Leading cryptocurrency exchanges Coinbase and Kraken have joined forces with other prominent technology 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 methods used by scammers to protect customers from different types of online fraud.
TLDR
- Coinbase, Kraken and other crypto companies have joined the “Tech Against Scams” coalition to address online scams and scams, including “pig slaughter” scams.
- The coalition includes high-profile companies including 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 romance scams and cryptocurrency scams.
- Losses due to cryptocurrency investment fraud in the United States reached $3.94 billion in 2023, and cooperation between technology companies is considered essential to prevent criminal activity.
- The coalition plans to educate users about common scams, provide them with tools to protect themselves, and work with law enforcement when necessary.
According to a Federal Bureau of Investigation (FBI) report, the coalition was formed at a time when losses due to cryptocurrency investment fraud in the United States alone will reach $3.94 billion in 2023, compared to $2.57 billion the previous year. ).
The rise in fraud highlights the urgent need for a concerted effort to tackle this problem head-on.
One of the main focuses of the “Tech Against Scams” coalition is addressing the growing threat of “pig slaughter” fraud.
These scams involve scammers contacting victims through dating apps or social media, building trust, and then offering them the opportunity to make money through cryptocurrency.
By sharing best practices, threat intelligence, and tips, the coalition aims to make it more difficult for fraudsters to trick online users and protect potential victims from harm.
Yoel Roth, Vice President of Trust and Safety at Match Group, emphasized the importance of collaboration across the industry in preventing criminal activity.
He said:
“We aim to make it more difficult for fraudsters to defraud users online, and we will continue to invest in features that help disrupt fraud and remove fraudsters from our platforms before they cause harm.”
The Coalition recognizes that scammers often target people across multiple Internet services, making it difficult for individual companies to see the full picture of malicious activity.
Guy Rosen, Meta’s chief security officer, pointed out that fraudsters often rely on each company acting individually, so companies need to join forces to fully solve the problem.
To protect users from fraud on each platform, coalition members will share information and collaborate on ways to educate and protect consumers from the ever-evolving financial fraud landscape.
We will also continue to work with law enforcement agencies, where necessary, to support their investigations by sharing information about online fraud and crimes that occur on our platforms.
The formation of the “Tech Against Scams” coalition is an important step towards combating the increasing number of online scams and scams.
It aims to bring together industry leaders from a variety of sectors, including cryptocurrency, social media, finance, and dating apps, to build a united front against malicious actors seeking to exploit vulnerable individuals for financial gain.