Coinbase, one of the world’s largest cryptocurrency exchanges, has decided to launch an education and awareness initiative for technology users around the world. The initiative, named “Tech Against Scam”, aims to educate the tech community on how to protect themselves from scams and online fraud, making the industry a safer place. Several tech giants, including Meta, Ripple, Kraken and Tinder’s parent company Match Group, have joined forces with Coinbase to form a coalition to combat online crime that plagues the industry worldwide.
According to a Statista study, out of the world’s population of around 8 billion, 66.2% or 5.35 billion people are connected to the internet and are exposed to gadgets and applications.The Global State of Fraud report 2023 highlights that economic losses due to fraud have now reached a staggering $1.26 trillion (roughly Rs. 853,082 crore), accounting for 1.05% of the global GDP.
Through its Tech Against Scam program, Coinbase aims to share insights with the global tech community that will help identify the malicious motives of phishing cybercriminals. According to the report, scammers often approach potential victims linked to the finance, dating, social media and cryptocurrency sectors.
“The Anti-Fraud Technology Coalition will serve as the primary meeting place for participating technology companies to discuss how they can work together to counter the tools used by fraudsters, educate and protect consumers, and stop rapidly evolving financial fraud. This work will include sharing best practices, threat intelligence, and other tips and information to help users stay safe before they become victims of online scams,” said a blog post from the crypto exchange outlining the goal of the initiative.
The exchange said “pig slaughter” is one fraud scheme that is rapidly evolving and needs to be tackled. In pig slaughter scams, victims are manipulated into investing large amounts in fraudulent crypto tokens or projects in exchange for promises of big profits, especially in the form of cryptocurrencies.
“While illicit activities account for less than 0.5% of cryptocurrency transactions, the impact on victims can be devastating and life-changing. It is estimated that consumers globally lose $1.4 trillion (approximately Rs 1,164,032.1 crore) every year to financial fraud,” the report added.
Coinbase’s blog post announcing the launch of its online safety initiative lists a series of steps people should keep in mind to protect themselves from notorious cybercriminals. These steps instruct people to avoid using third-party apps for financial-related tasks, discuss investment plans with trusted and informed organizations, handle assets through reputable platforms, and stay up to date with the latest information.
For now, Coinbase has not revealed specifics about what the effort will entail in terms of online literacy campaigns, educational workshops, and community engagement, and members of the company’s coalition have also not commented on the development so far.
