Major technology companies across various industries including social media, dating apps, financial institutions, and cryptocurrency exchanges have formed a coalition named “Tech Against Scams.” Announced on May 21, 2024, this initiative includes prominent participants such as Ripple, Coinbase, Meta, Match Group, Kraken, and Gemini, teaming up to enhance consumer protection and disrupt scam operations globally.
The Team to Combat Scammers
“Tech Against Scams” serves as a primary platform where tech giants collaborate to share best practices, threat intelligence, and other vital information aimed at protecting users before they fall victim to online frauds. The coalition began as an initiative last summer by Match Group, Coinbase, and Meta to understand and mitigate cross-platform threats, eventually leading to a broader partnership to leverage their combined expertise against global scams. The coalition also plans to work closely with law enforcement agencies to support ongoing investigations and enhance the safety of online spaces.
What is a Pig Butchering Scam?
The “pig butchering” scam, a focal point of the coalition’s efforts, involves scammers fattening their victims’ trust before defrauding large sums of money, typically through romance or investment scams. These scams have seen a sharp rise with scammers increasingly leveraging online platforms to target unsuspecting individuals. Previous incidents have shown that victims often lose significant amounts of money to such schemes, highlighting the urgency of addressing these frauds.
Need to Tackle Crypto Frauds
Crypto-related scams have become increasingly sophisticated, making it crucial for industry leaders to collaborate in preventing such criminal activities. Philip Martin, Chief Security Officer at Coinbase, stated, “Fraud schemes are becoming more intricate, requiring a unified approach to safeguard digital environments.”
Devraj Varadhan, EVP of Engineering at Ripple, emphasized the need to educate individuals on protecting themselves from these predatory tactics. The coalition aims to disrupt the operations of scammers by innovating new technologies and improving consumer education on scam awareness. Meanwhile, Brad Garlinghouse, CEO of Ripple, stated,
It’s high time we dismantled the scammers once and for all. Proud that Ripple is joining this coalition along with other industry heavyweights!
Amidst a backdrop of fluctuating scam activities, cryptocurrency phishing attacks saw a 46% decline in April, yet this was overshadowed by a 145% increase in phishing activities on Coinbase’s Base chain. The concerning trend continued with the Base chain being central to two of the month’s largest crypto thefts, representing over 20% of the total stolen value.
