KEY FACT: Some leading tech firms and crypto exchanges have partnered to launch a "Tech Against Scams" alliance, aimed at tackling the growing online fraud and financial schemes. Meta, Coinbase, Ripple, Kraken, Gemini, Match Group, and Global Anti-Scam Organization (GASO) are some of the leading names in the alliance.
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Introducing ‘Tech Against Scams’
While digital currencies continue to reshape the financial sector, the proliferation of crypto-related scams has emerged as a significant threat to both novice and experienced investors. Many have fallen victim and startups have gone bankrupt owing to scams. To address this growing concern, leading cryptocurrency exchanges and tech firms have come together to form the "Tech Against Scams" initiative, which is a pioneering coalition dedicated to combating crypto fraud.
The alliance membership is made up of Meta, Coinbase, Ripple, Kraken, Gemini, Match Group, and the Global Anti-Scam Organization (GASO), among others. The cross-industry coalition is meant to pool insights and expertise from various industries. According to an official release by Coinbase, the alliance aims "to protect and educate users, emphasizing that scams are a tech-wide issue, not limited to social media, crypto, or finance”.
This initiative marks a critical step towards fostering a safer and more secure environment for cryptocurrency transactions, leveraging cutting-edge technology and collaborative efforts to protect users from fraudulent activities. As the crypto market continues to evolve, the proactive measures taken by this coalition signify a united front in the fight against cybercrime, setting a new standard for industry accountability and user safety.
Regional trends in Financial Fraud, Source: INTERPOL
A recent Global Financial Fraud assessment by the International Criminal Police Organization (INTERPOL) released in April, revealed that the global embrace of new technologies is a double-edged sword which also enables organized crime groups to better target victims around the world. The assessment showed that Africa record high prevalence of romance fraud, Asia leads in impersonation fraud, while advanced payment fraud is growing in America and Africa.
INTERPOL further stressed that the use of artificial intelligence (AI), large language models, and cryptocurrencies has resulted in more sophisticated frauds with little cost. The perpetrators often use deception strategies to gain victims’ trust before stealing from them. INTERPOL Secretary General Jürgen Stock said:
“We are facing an epidemic in the growth of financial fraud, leading to individuals, often vulnerable people, and companies being defrauded on a massive and global scale... “It is important that there are no safe havens for financial fraudsters to operate. We must close existing gaps and ensure information sharing between sectors and across borders is the norm, not the exception."
“We also need to encourage greater reporting of financial crime as well as invest in capacity building and training for law enforcement to develop a more effective and truly global response.”
The analysis stated an urgent need to strengthen data collection and analysis as well as information sharing between sectors to develop more informed and effective counter strategies. In response, this Tech Against Scams initiative leveraging cross-platform and sector collaborations, is to create a safer digital environment and prevent scammers from exploiting users. Recounting on this, Coinbase explained:
“Our collaboration across sectors will enhance visibility and help us develop evolving best practices to combat rapidly evolving scams, such as pig butchering,”
In an X Post, Coinbase stated that the 'Tech Against Scams" coalition would primarily utilize educational tools to help users recognize the early signs of whether they are in contact with a scammer. crypto users would be educated about scam strategies and tactics and how to prevent them.
“Together with industry leaders, we’re committed to protecting and educating users,”
Source: Coinbase Video on X
Yoel Roth, VP, of Trust & Safety at Match Group, speaking in support of the coalition noted that the 'Tech Against Scams" collaboration would invest in new technologies to help disrupt fraud and scams faster.
“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”.
The safety of users in the crypto space and emerging technologies is important, hence, the importance of ‘Tech Against Scams’ initiative cannot be overemphasized. It is hoped that users can take advantage to acquire as much knowledge that keeps them ahead of the scam games.
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This is a great development. Tech against scam initiative will really make it impossible for fraudster to operate and ensuring a safe and secure place for cryptocurrency transaction. Thanks for sharing this.
Many are really falling victims, especially as they join crypto space for the money. It should be learning before earning.
Digital currencies have transformed the financial sector, offering new opportunities to investors. However, this growth has also attracted scammers, who exploit the success of investors. Therefore, the coalition is here to protect the integrity of the cryptocurrency market from fraudulent activities.
Thank you for sharing this information. I have learned about the coalition's efforts.
It's all up for the lessons. Nobody should be a victim of scam.
Thank you
That's great news! Emphasizing cross-industry collaboration and leveraging advanced technology to safeguard users will undoubtedly make a positive impact. Also, the focus on education and faster disruption of scams aligns well with INTERPOL's call for enhanced data collection and information sharing.
I'm an advocate of collaboration. We can achieve more together and with less efforts on each of our ends. I know scams cannot stop, but the rates can be reduced.
This is awesome. It is even long overdue. I am particularly interested in this project as fraudulent activities seems to be the reasons why some governments are not too comfortable with crypto
This is a welcome development. Crypto new users like us really need this education. Sad that many people for these scams on daily basis. Will Hive collaborate on this initiaitive?
Hive is different in every sense. The security of your account on Hive depends on You. We're very decentralized and you own your account in totality.
This is really an incredible step taken by the crypto exchange industries, it is no doubt that crypto is leading the world but at the same time the expansion of crypto has brought in a lot of cyber crime making crypto looks like a scam when it is not. I believe with proper education investors will be able to differentiate between the scammers and the real exchanger.
We need more of this education on daily basis. Thanks that on Hive, we can learn while we earn.
This is indeed a great step to take, the "Tech Against Scam" Initiative has truly ensured the safety of crypto users on crypto space, this initiative has proven to make a significant impact in the fight against scams and fraudulent activities, and I wish it success! i'm glad to hear this.