Tech Firms Collaborate to Combat Online Fraud and Crypto Scams

In response to escalating online fraud and cryptocurrency scams, major technology companies, including Meta, Match Group, and Coinbase, have formed a coalition named “Tech Against Scams.” This coalition aims to counteract the growing threat of online scams on platforms such as social media, dating apps, and cryptocurrency exchanges.

The coalition’s objective is to enhance user protection by sharing data, improving scam detection techniques, and educating the public about financial scams. This initiative comes in light of increasing financial losses due to various scams, including romance and investment frauds. According to the U.S. Federal Trade Commission, U.S. consumers reported losing $770 million to social media scams in 2021, a significant rise from previous years. Additionally, investment scams resulted in losses exceeding $3.8 billion in 2022.

Crypto-related fraud remains a prominent issue, with numerous high-profile cases involving money laundering and hacks. The coalition’s efforts will also focus on combating specific scams like “pig butchering,” a long-term investment fraud where scammers build trust with victims through social media before stealing their funds.

Collaboration among these tech giants is seen as essential for effectively addressing this multifaceted problem. Yoel Roth, VP of Trust & Safety at Match Group, emphasized the importance of cross-industry cooperation to prevent criminal activities and develop effective solutions. Meta’s Chief Security Officer, Guy Rosen, highlighted the need for collective action to combat organized crime and improve fraud detection.

The coalition will work closely with law enforcement to support investigations and share information about fraudulent activities. This initiative marks a significant step towards creating a safer online environment for users across various platforms.