Crypto and tech giants unite to combat online scams

In a bid to address the escalating problem of online fraud and financial schemes, leading tech companies and crypto exchanges have joined forces to form the ‘Tech Against Scams’ alliance.

According to a May. 21 Coinbase announcement, the coalition includes industry giants such as Meta, Coinbase, Ripple, Kraken, Gemini, Match Group, and the Global Anti-Scam Organization (GASO). It aims to safeguard users and raise awareness about the pervasive nature of scams across various sectors, including social media, crypto, and finance. The announcement reads:

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

The alliance members will collaborate by sharing insights and expertise from their respective industries to create a safer digital environment and prevent scammers from exploiting users. According to a recent Global Financial Fraud assessment by INTERPOL, the adoption of new technologies has enabled organized crime groups to target victims worldwide more effectively.

Scammers are increasingly employing deceptive tactics like pig-butchering — United States authorities were recently able to recover $2.3 million lost to this scam type — which involves building trust with victims before stealing from them. The rise of AI, large language models, and cryptocurrencies has further contributed to the sophistication of these frauds, making them more difficult to detect and prevent.

The Tech Against Scams initiative seeks to address this growing concern by educating users about scam strategies and tactics and providing them with the tools to recognize the early signs of a potential scam. Estimates suggest that consumers worldwide lose a staggering $1.4 trillion to financial scams every year, highlighting the urgent need for proactive measures to combat this issue.

Coinbase, in an official release, emphasized the importance of collaboration across sectors in enhancing visibility and developing best practices to combat rapidly evolving scams.

Yoel Roth, VP of Trust & Safety at Match Group, echoed this sentiment. He said in an announcement:

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

Ongoing war on scams

As the digital landscape continues to evolve, initiatives like the Tech Against Scams alliance will play a crucial role in protecting users from the ever-increasing threat of online fraud and financial schemes. By pooling resources and expertise, these industry leaders aim to create a safer online environment for all users, regardless of their background or level of technical knowledge.

The announcement follows recent reports that British engineering firm Arup has confirmed it was the victim of a serious deepfake scam after one of its Hong Kong-based employees was misled into sending $25 million to fraudsters.