Coinbase and Meta Unite to Stand Against Crypto Scams

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  • Coinbase and Meta have partnered with other entities to fight scams
  • The entities have formed a coalition known as “Tech Against Scams”
  • The initiative will offer education and safety tips on how to detect and protect against online scams

Crypto exchange Coinbase and tech giant Meta have joined other crypto and tech firms to form an initiative meant to fight crypto scams such as pig butchering scams. Dubbed “Tech Against Scams,” the initiative intends to educate people on how to protect themselves against scams and to prevent “online fraud and financial schemes.” Other notable members of the group include Gemini, Tinder’s parent company Match Groups, Ripple, and Global Anti-Scam Organization (GASO), a sign that tech and crypto firms are ready to jointly fight scams across industries.

Scams are Becoming More Convincing

According to Coinbase CSO Philip Martin, scammers are “becoming increasingly sophisticated” necessitating industry leaders to jointly tackle malicious actors for a safer virtual world. Ripple’s Devraj Varadhan also noted that scams are becoming “more convincing” enabling them to net more victims.

GASO’s Brian Bruce observed that the scams can only be tackled through a “multi-sector response” since bad actors operate on a global level and across platforms and industries.

The Tech Against Scams coalition will start by formulating “work streams” that will outline the framework on how the firms will collaborate and create “tools and information needed to better protect” consumers.

Binance Accused of Helping Scammers

Among the coalition’s main targets is to combat romance and pig butchering scams. Last year, the United States Department of Justice (DoJ) seized crypto worth over $100 million from pig butchering scams. At the time, the DoJ disclosed that scammers first cultivated a relationship with victims before fronting a dubious investment opportunity.

Apart from the United States, pig butchering and romance scams have been recorded in the Philippines and countries in Southeast Asia.

Some exchanges like Binance have in the past been accused by scam victims of being part of the racket for facilitating the movement of proceeds from scams.

With top tech and crypto companies standing against scams, it’s to be seen whether it’ll help lower the number of victims and the amount of funds stolen through scams.