Coinbase, one of the world’s largest crypto exchanges, has decided to launch an educational and awareness initiative for technology users from around the world. Dubbed ‘Technology Against Fraud’, the initiative aims to inform the tech community about ways to protect against fraud and online fraud – in an attempt to make the industry a safe space. Multiple tech behemoths including Meta, Ripple, Kraken and Tinder-parent Match Group have teamed up with Coinbase to form a coalition against online crime plaguing the industry worldwide.
Research conducted by Statista estimates that of the nearly eight billion world population, 66.2 percent or 5.35 billion are connected to the web and exposed to gadgets and apps. In 2023, the Global State of Scams report noted that the financial loss due to fraud is now a whopping $1,026 trillion (roughly Rs. 85,30,820 crore), which is 1.05 percent of global GDP.
Through its ‘Tech Against Scam’ program, Coinbase aims to share insights with the global tech community, which could help them identify the malicious motives of cybercriminals looking to ‘phish’. More often than not, the report says, scammers reach out to potential victims associated with the finance, dating, social media and cryptocurrency sectors.
“The Tech Against Scams Coalition serves as the primary gathering body for technology companies to collaborate on ways to take action against the tools used by scammers, educate and protect consumers, and disrupt rapidly evolving financial fraud. This work will include the sharing of best practices, threat intelligence, and other tips and information to keep users safe and protected before they fall victim to an online fraud scheme,” the crypto exchange said in a blog post outlining the purpose of the initiative.
The exchange mentioned that ‘pig slaughter’ is one of the fast-growing fraud tactics that needs to be addressed. In pig slaughter scams, victims are manipulated into making large investments, especially in the form of cryptocurrencies, in fraudulent crypto tokens or projects in exchange for promises of large returns.
“Although illegal activities represent less than 0.5 percent of crypto transactions, the impact on victims can be devastating and life-changing. It is estimated that consumers worldwide lose $1.4 trillion (approximately Rs. 1,16,40,321 crore) to financial fraud every year,” the report added.
In a blog post announcing the launch of Coinbase’s online security initiative, the exchange outlined a bunch of steps people can keep in mind to stay safe from notorious cybercriminals. These steps have guided people to avoid using third-party apps for finance-related tasks, to discuss investment plans with trusted and informed entities, to deal with assets through reputable platforms and to be informed.
For now, Coinbase has not revealed exactly what this initiative will include in terms of campaigns, educational workshops and community engagement around online literacy. The members of her coalition have not yet commented on this development.
