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Cryptocurrency and tech giants team up to fight online scams
In an effort to address the growing problem of online fraud and financial schemes, major technology companies and cryptocurrency exchanges have joined forces to form the “Tech Against Scams” alliance.
Second a May. 21 Coinbase announcement, the coalition includes industry giants such as Meta, Coinbase, Ripple, Kraken, Gemini, Match Group and Global Anti-Scam Organization (GASO). It aims to safeguard users and raise awareness of the pervasive nature of rip-offs across various industries, including social media, cryptocurrencies and finance. The advert reads:
Our collaboration across industries will improve visibility and help us develop evolving best practices to combat rapidly evolving scams, such as “pig slaughter.”
Alliance members will collaborate by sharing insights and expertise from their respective industries to create a safer digital environment and prevent fraudsters from exploiting users. According to a recent assessment of global financial fraud conducted by INTERPOL, the adoption of new technologies has enabled organized criminal groups to target victims around the world more effectively.
Scammers are increasingly using deceptive tactics such as pig slaughter: US authorities recently did so able to recover $2.3 million lost due to this type of scam – which involves building trust with victims before robbing them. The rise of artificial intelligence, 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 around the world lose a staggering $1.4 trillion to financial scams every year, highlighting the urgent need for proactive measures to combat this problem.
Coinbase, in an official statement, highlighted the importance of collaboration across industries to improve visibility and develop best practices to combat rapidly evolving scams.
Yoel Roth, vice president of Trust & Safety at Match Group, echoed this sentiment. He said inside an ad:
Collaboration between technology companies from all sectors is essential to prevent criminal activity and ultimately helps online platforms keep pace and develop effective solutions for various types of financial crimes
The war on scams continues
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-growing 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 from British engineering firm Arup confirmed that he was the victim of a serious deepfake scam after one of its Hong Kong-based employees was misled into sending $25 million to scammers.