To tackle the growing problem of online fraud and financial scams, leading technology companies and crypto exchanges have come together to form the ‘Tech Against Scams’ alliance.
According to A May. 21 Coinbase announcementThe alliance includes industry giants such as Meta, Coinbase, Ripple, Kraken, Gemini, Match Group, and the Global Anti-Scam Organization (GASO). It aims to protect users and raise awareness of the widespread nature of Scams In a variety of sectors including social media, crypto and finance. The announcement reads:
Our collaboration across sectors will increase visibility and help us develop best practices to tackle rapidly evolving scandals 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 scammers from exploiting users. According to Interpol’s recent Global Financial Fraud Assessment, the adoption of new technologies has enabled organized crime groups to more effectively target victims around the world.
Scammers are increasingly resorting to deceptive tactics such as pig slaughter – officials in the United States recently did this Able to recover the 2.3 million dollars lost in this scam — which involves building trust with victims before stealing from them. The rise of AI, large language models, and cryptocurrencies have 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 early signs of a potential scam. Estimates suggest that consumers worldwide lose $1.4 trillion to financial scams every year, highlighting the urgent need for proactive measures to tackle this issue.
Coinbase, in an official release, stressed the importance of collaboration across sectors in increasing visibility and developing best practices to combat rapidly evolving scams.
Joel Roth, vice president of trust and safety at Match Group, echoed this sentiment. He said Announcement,
Tech companies from different industries collaborating with each other is essential to prevent criminal activities, and ultimately helps online platforms stay ahead of different types of financial crimes and develop effective solutions for them.
The ongoing war against scams
As the digital landscape evolves, initiatives like the Tech Against Scams Coalition will play a vital 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 safe 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 that it was the victim of a serious deepfake scam The incident occurred when one of its Hong Kong-based employees was misled into sending $25 million to fraudsters.
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