Meta, Ripple, Kraken Join Coinbase’s ‘Tech Against Scam’ Awareness Initiative: Details

Coinbase, one of the largest crypto exchanges in the world, has decided to launch an educational and awareness initiative for technology users from around the world. Named ‘Tech Against Scam', this initiative aims to inform the tech community about ways to safeguard themselves against frauds and online deceit – in an attempt to making the industry a safe space. Multiple tech mammoths including Meta, Ripple, Kraken, and Tinder-parent Match Group have joined hands with Coinbase to form a coalition against online crimes plaguing the industry worldwide.

Research by Statista estimates that out of the world population of nearly eight billion, 66.2 percent or 5.35 billion are connected to the web and are exposed to gadgets and applications. In 2023, the Global State of Scams report had highlighted that financial loss due to scams now amounts to a staggering $1.026 trillion (roughly Rs. 85,30,820 crore), which makes for 1.05 percent of the global GDP.

Through its ‘Tech Against Scam' programme, Coinbase is looking to share insights with the global tech community, that could help them identify malicious motives of cyber criminals looking to ‘phish'. More often than not, the report noted, scammers reach out to potential victims linked to the sectors of finance, dating, social media, and cryptocurrency.

“The Tech Against Scams Coalition serves as a primary convening body where participating tech companies will collaborate on ways to take action against the tools used by scammers, educate and protect consumers, and disrupt rapidly evolving financial scams. This work will include sharing best practices, threat intelligence, and other tips and information to help keep users safe and protected before they become victim to an online fraud scheme,” a blog post by the crypto exchange said, outlining the purpose of this initiative.

The exchange mentioned that ‘pig butchering' is among scam tactics that is rapidly evolving and needs to be tackled. In pig butchering scams, victims are manipulated into making large investments, especially in the form of cryptocurrencies, into scam crypto tokens or projects in exchange for big return promises.

“While illicit activity represents less than 0.5 percent of crypto transactions, the impact on victims can be devastating and life changing. It's estimated that consumers worldwide lose $1.4 trillion (roughly Rs. 1,16,40,321 crore) to financial scams every year,” the report added.

In the blog post announcing the launch of Coinbase's online safety initiative, the exchange listed a bunch of steps that people can keep in mind to be safe against notorious cyber criminals. These steps have directed people to avoid using third party apps for finance-related work, discuss investment plans with trusted and informed entities, engage with assets through reputable platforms, and stay informed.

For now, Coinbase has not exactly disclosed what will this initiative entail in-terms of campaigns, educational workshops, and community engagement around online literacy. Members from its coalition have also not commented on this development so far.