Major Crypto Exchanges Launch ‘Tech Against Scams’ coalition to Combat Crypto Fraud

Some of the biggest tech firms and crypto exchanges have partnered to launch a ‘Tech Against Scams’ alliance, aiming to tackle the growing online fraud and financial schemes.

Meta, Coinbase, Ripple, Kraken, Gemini, Match Group and the Global Anti-Scam Organization (GASO) are among the alliance members.

The cross-industry coalition would pool insights and expertise from various industries. The alliance aims “to protect and educate users, emphasizing that scams are a tech-wide issue, not limited to social media, crypto, or finance,” Coinbase noted in an official release.

According to Global Financial Fraud assessment by the International Criminal Police Organization (INTERPOL) released in April, global embrace of new technologies are “enabling organized crime groups to better target victims around the world.”

Perpetrators are increasingly using deception strategies like pig-butchering, which entail fraudsters gaining victims’ trust before stealing from them, it added.

The use of AI, large language models and cryptocurrencies have resulted in more sophisticated frauds with little cost, INTERPOL stressed.

As a result, the Tech Against Scams initiative creates a safer digital environment and prevent scammers from exploiting users.

“Our collaboration across sectors will enhance visibility and help us develop evolving best practices to combat rapidly evolving scams, such as pig butchering,” Coinbase noted.

Combating Scams Through Education

Estimates suggest that consumers worldwide lose $1.4 trillion to financial scams every year. The coalition primarily aims to help users recognize the early signs of whether they are in contact with a scammer

The alliance focuses on educating users about scam strategies and tactics and how to prevent them.

“Together with industry leaders, we’re committed to protecting and educating users,” Coinbase stated on X.

We’re proud to announce the Tech Against Scams coalition.

Scams are a tech-wide issue and require an industry-wide response. Together with industry leaders, we're committed to protecting and educating users.

Learn More→ https://t.co/3w8gfEUFZr pic.twitter.com/E1nGlT8lzi

— Coinbase 🛡️ (@coinbase) May 21, 2024

“Tech companies across industries collaborating with each other is essential for preventing criminal activity, and ultimately helps online platforms stay ahead of, and develop effective solutions for, various types of financial crimes,” said Yoel Roth, VP, Trust & Safety at Match Group.

Roth also noted that the collaboration would invest in new technologies to help disrupt fraud and scams faster.