Meta and Coinbase Head Up New Coalition to Combat Online Fraud and Crypto Scams

Some of the biggest names across social media, led by Meta, announced a collaboration to fight the ever-growing issue of online financial scams, on 21 May 2024. The collaboration brings together dating apps, social media and digital finance companies.

The group hopes to pool their resources and in-house anti-scam efforts to foster a more effective scam detection and prevention process across what they call the “life” of a scam and members of the group include Meta, Match Group (Hinge, Tinder), Coinbase, Kraken and Gemini. The Global Anti-Scam Organization make up the remainder of the coalition.

👑 CRYPTO COMPANIES, INCLUDING @Ripple, @coinbase, @krakenfx AND @Gemini FORM A NEW COALITION WITH TECH COMPANIES LIKE @Meta AND #MatchGroup (THE PARENT COMPANY OF @Tinder AND @hinge) TO COMBAT SCAMS ➡️ “THE COALITIOIN GIVES MEMBERS AN OPPORTUNITY TO SHARE INFORMATION IN AN… https://t.co/yP22ZLfinM pic.twitter.com/gpa2G7QGPz

— XRP DROPZ (@DROPZXRP) May 23, 2024

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Coinbase, Kraken and Gemini Represent the Crypto Arm of Coalition

The team-up has been named ‘Tech Against Scams” and will act as a body between a large network of tech companies that aims to “collaborate on ways to take action against the tools used by scammers, educate and protect consumers, and disrupt rapidly evolving financial scams.”

The group hopes to pool their resources and in-house anti-scam efforts to foster a more effective scam detection and prevention process across what they call the “life” of a scam. It is building off of work that began in 2023 whereby a collaboration between Meta, Coinbase, and Matchgroup worked together to detect “pig butchering” crypto scams. The scams apparently use dating apps and social media platforms to find victims for fake foreign exchange or crypto trading platforms.

Meta and Coinbase Speak on its Anti-Fraud Initiative

Guy Rosen, Chief Information Security Officer at Meta said, “Scammers and the organized criminal groups behind pig butchering schemes target people across many internet services, making it hard for any one company to see the full picture of malicious activity and counting on each of us working in silos”.

“We hope that this coalition will serve as a force multiplier for security teams at tech companies to share threat insights and trends to enable more impactful disruptions of scam networks around the world,” added Rosen.

“While illicit activity represents less than 0.5% of crypto transactions, the impact on victims can be devastating and life-changing,” Coinbase said in its press release. “It’s estimated that consumers worldwide lose $1.4 trillion to financial scams every year. At Coinbase, we pride ourselves on being the most trusted crypto exchange. However, no platform, regardless of its safety measures and sophisticated security technology, is immune from users potentially falling victim to scams. Therefore, it is imperative to stay safe and recognize the early signs that you may be in contact with a scammer.”

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.