Leading tech companies like Meta, Match Group, Coinbase, Kraken, Ripple, and Gemini, along with the Global Anti-Scam Organisation, have formed a new coalition, Tech Against Scam, to bolster industry-wide efforts to prevent financial schemes that prey on consumers.
The coalition’s primary objectives are to share threat intelligence, establish best practices, and educate consumers on recognising and avoiding scams.
The genesis of Tech Against Scams dates back to last summer when Match Group, Coinbase, and Meta initiated a collaboration to address cross-platform threats, including the notorious ‘pig-butchering‘ crypto scams.
This initial collaboration highlighted the potential for a broader, more effective approach by involving additional companies from various sectors, including social media, online dating, and cryptocurrency platforms.
“Scammers and the organised 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,” said Guy Rosen, Chief Information Security Officer at Meta.
Data released by the Federal Trade Commission shows that in 2023, consumers lost more than $10 billion to fraud, a 14% increase over last year.
Out of these, consumers lost the most to investment scams, followed by imposter scams. Email phishing is now the most preferred contact method, replacing phone calls, which are now placed second.
“People around the world lose hundreds of millions of dollars every month. Criminals are constantly adapting by leveraging and adopting new technology to scam on a global and massive scale,” said Brian Bruce, Chief of Operations at Global Anti-Scam organisation. “As a result, we strongly believe that a multi-sector response with tech and financial companies is necessary to fight against his major transnational issue.”
The Tech Against Scams coalition will leverage the significant investments these companies have already made in safeguarding their users from fraud and other security threats. Looking ahead, the alliance will lead the creation of new initiatives to establish and share best practices, foster collaboration among member companies, and equip consumers with the knowledge and tools needed to protect themselves from scams.
In the News: Incognito Market dark web drug trafficker arrested in US; faces life in prison
