Crypto exchanges launch anti-scam coalition in partnership with tech giants

Coinbase has formed a coalition with industry giants from across the tech sector to combine resources and expertise to tackle the growing issue of online fraud and financial schemes.

The “Tech Against Scams” coalition includes industry giants like Match Group, Meta, Kraken, Ripple, Gemini, and the Global Anti-Scam Organization (GASO).

Unified effort necessary

The coalition highlights the necessity of a unified effort to address scams, which have become pervasive across various platforms and industries. By joining forces, these companies hope to create a safer digital environment and enhance protection for consumers against rapidly evolving scams.

Coinbase said:

“Scams are not limited to social media, cryptocurrency, finance, or dating apps; they are a widespread issue across the tech landscape. Through this coalition, we aim to share insights, knowledge, and best practices to protect users and prevent scammers from exploiting them.”

The Tech Against Scams coalition will prioritize several key areas, including the exchange of threat intelligence, the development of evolving best practices, and consumer education.

Members will share information on scam tactics and tools used by fraudsters, working together to create and update strategies to combat these schemes. Emphasis will be placed on educating users about recognizing and avoiding scams, ultimately helping to protect them from becoming victims.

$1.4 trillion impact

Despite blockchain transactions accounting for only 0.34% of illicit activity, the impact on victims can be significant. Coinbase highlighted that globally, consumers lose approximately $1.4 trillion to financial scams annually.

The coalition aims to reduce this number by improving awareness and protective measures.

The exchange said:

“While Coinbase maintains a robust compliance program, no platform is immune to scams. It’s crucial for users to be vigilant and informed. By educating consumers and sharing resources, we can help prevent scams before they occur.”

Coinbase advised consumers to take precautions such as downloading apps only from trusted sources, protecting their assets by avoiding transactions with unknown individuals, consulting with trusted friends and family about potential investments, and using reputable crypto wallets and exchanges. Staying informed about the latest scam tactics is also essential.

The coalition’s ultimate goal is to foster a secure and fair financial environment, ensuring the promise of increasing global economic freedom.

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