Coinbase has formed a coalition with industry giants from across the technology sector to combine resources and expertise to tackle the growing problem of online fraud and financial schemes.
The “Technology against fraudThe coalition includes industry giants such as Match Group, Meta, Kraken, Ripple, Gemini and the Global Anti-Scam Organization (GASO).
Joint effort necessary
The coalition emphasizes the need for a concerted effort to tackle scams, which have become widespread across platforms and industries. By joining forces, these companies hope to create a safer digital environment and improve consumer protection against rapidly evolving scams.
Coinbase said:
“Scams are not limited to social media, cryptocurrency, finance or dating apps; they are a widespread problem across the technology landscape. Through this coalition, we want to share insights, knowledge and best practices to protect users and prevent scammers from exploiting them.”
The Tech Against Scams coalition will prioritize several key areas, including threat intelligence exchange, development of evolving best practices, and consumer education.
Members will share information about scam tactics and tools used by fraudsters, and work together to create and update strategies to combat these schemes. Emphasis will be placed on educating users on how to recognize and avoid scams, which can ultimately protect them from falling victim.
$1.4 trillion impact
Despite blockchain transactions accounting for only 0.34% of illegal activity, the impact on victims can be significant. Coinbase highlighted that consumers worldwide lose approximately $1.4 trillion annually to financial scams.
The coalition wants to reduce this number by improving awareness and protective measures.
The exchange said:
“While Coinbase has a robust compliance program, no platform is immune to scams. It is crucial that users are vigilant and informed. By educating consumers and sharing resources, we can help prevent scams before they happen.”
Coinbase advised consumers to take precautions such as downloading apps only from trusted sources, protecting their assets by avoiding transactions with unknown individuals, consulting trusted friends and family about potential investments, and using reputable crypto wallets and scholarships. Staying up to date on the latest scam tactics is also essential.
The coalition’s ultimate goal is to promote a safe and fair financial environment, delivering on the promise of increasing global economic freedom.