Tech
Tech giants form coalition to fight online fraud and crypto scams
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Social Media Scams Led to $770 Million Loss for US Consumers in 2021
What’s the story
Major technology companies, including HalfCorrespondence group e Coinbase, have joined forces to form a new coalition called “Tech Against Scams.” The main objective of this alliance is to combat online frauds prevalent on social media platforms, dating apps and in the cryptocurrency sector. The coalition aims to combat the tools used by scammers and improve public education about financial scams.
The growing cost of online fraud
According to United States Federal Trade Commission (FTC), romance scams have become a significant problem, costing consumers more than any other category of fraud as of 2019. The FTC also said that social media scams have led to a loss of $770 million per U.S. consumers in 2021, marking an 18-year increase from 2017. Additionally, investment scams resulted in consumer losses exceeding $3.8 billion last year, more than double the amount lost in 2021.
The cryptocurrency industry’s fight against fraud and scams
THE cryptocurrency The industry has been significantly affected by fraud, with company founders and other prominent figures facing legal consequences for fraud, money laundering and cyber attacks. These scams often span multiple platforms. For example, a dating app scam could lead a user to a fraudulent cryptocurrency exchange. This cross-platform nature of scams has led to calls for better data sharing between companies to help tackle the problem.
The members of the coalition and their strategy against scams
Other crypto firms such as Kraken, Ripple, and Gemini have also joined the “Tech Against Scams” coalition. They aim to protect their customers from various types of fraud, including romance scams and a crypto scam known as “pig slaughter,” which involves long-term investment fraud where victims are tricked into making investments in cryptocurrencies. Scammers are using more and more TO THE technology to create persuasive interactions with their victims via FaceTime calls, phone calls and emails.
Collaboration in the sector is essential to prevent criminal activity
“Collaboration between technology companies across all industries is essential to prevent criminal activity,” said Yoel Roth, vice president of Trust & Safety at Match Group. To safeguard users from fraud on their platforms, these companies will share tips and information with each other and collaborate on ways to educate consumers about financial scams. They will also collaborate with law enforcement agencies, when requested, by sharing information on online fraud/crimes occurring on their platforms.