Coinbase Leads Coalition of Tech Giants Against Financial Scams

Coinbase Leads Coalition of Tech Giants Against Financial Scams

by May 23, 2024

Crypto exchange Coinbase has launched the Tech Against Scams coalition, teaming up with industry leaders like Match Group (the parent company of Tinder and Hinge), Meta, Kraken, Ripple, Gemini, and the Global Anti-Scam Organisation (GASO) to tackle online fraud and financial schemes.

The Tech Against Scams coalition focuses on preventing online fraud and financial schemes targeting consumers across various industries.

It will collaborate on actions against scam tools, educate and protect consumers, and disrupt rapidly evolving financial scams. This includes sharing best practices, threat intelligence, and other tips to keep users safe.

This will enhance visibility and help develop best practices to combat rapidly evolving scams like “pig butchering.”

These scams are a widespread issue across the entire tech landscape, not limited to social media, cryptocurrency, finance, or dating apps and this requires a collective effort from all the industry players.

While illicit activity represents less than 0.5% of crypto transactions, the impact on victims can be devastating. It is estimated that consumers worldwide lose US$1.4 trillion to financial scams each year.

Users are urged to stay vigilant against scams by avoiding unsolicited investment advice, using reputable platforms, and educating themselves on fraud tactics. The goal is to safeguard the community and enhance global economic freedom.

Coinbase said that it is committed to updating the financial system to make it safer and more secure. Although only 0.34% of blockchain transactions are linked to illicit activities, with cash still being the preferred medium for such activities, crypto security remains a top priority.

The crypto exchange shared that its compliance programme includes KYC checks, sanctions screenings, suspicious activity reporting, and strong law enforcement partnerships to prevent and detect illicit activities on its platform.