Tech
Crypto giants and social apps unite
In a significant move to combat online fraud, several major technology companies have formed a coalition called “Tech Against Scams.”
This group aims to address the growing wave of online scams, particularly romance scams, by promoting collaboration and information sharing across industries.
How Tech Against Scam plans to tackle romance scams
The coalition includes important actors such as CoinBaseMatch Group (parent company of Tinder and Hinge), Meta, Kraken, Ripple, Gemini and the Global Anti-Scam Organization. By joining forces, these companies aim to create a united front against the sophisticated tactics used by scammers. Their efforts will focus on sharing best practices, threat intelligence, and strategies to educate and protect users.
Romance scams have become increasingly widespread. Scammers use fake identities to build relationships with potential victims via text messages, social media platforms or dating apps.
To know more: The 15 most common crypto scams to watch out for
After establishing trust, scammers introduce the idea of cryptocurrency investments. Eventually, they convince victims to transfer funds to accounts under the scammers’ control. This process is often referred to as “pig slaughter”, highlighting the gradual and systematic exploitation of victims.
In response to these threats, Tech Against Scams plans to disrupt the tools and methods used by scammers. This will make it more difficult for them to operate.
“Fraud schemes are becoming increasingly sophisticated, underscoring a greater emphasis on the importance of industry leaders coming together to combat fraud and ensure a safer digital environment for users. We are committed to tackling emerging online scams through collaboration, information sharing and better consumer education,” Philip Martin, Chief Safety Official at Coinbase, She said.
BeInCrypto reported a recent example of the impact of these scams on May 18 The United States Department of Justice (DOJ) has arrested two Chinese citizensDaren Li and Yicheng Zhang, for orchestrating a romance scam that led to the laundering of at least $73 million.
The Justice Department’s investigation revealed extensive coordination among the conspirators. This included communications discussing the logistics of the program and the use of various shell companies to facilitate money laundering. The scam involved the conversion of over $73 million into USDT stable currency and the transfer of more than $341 million in virtual assets to a crypto wallet.
As cryptocurrency adoption grows, so does the ingenuity of related scams. According to a report by Chainalysis, romance scams have increased eighty-five times since 2020. Losses from such scams are suspected to reach $374 million in 2023.
To know more: Cryptocurrency Social Media Scams: How to Stay Safe
Revenue growth by scam subclass. Source: Catenaanalysis
This highlights the urgent need for initiatives like Tech Against Scams to protect consumers from these evolving threats.
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