June 16, 2024

Major players in the tech industry, including Meta and Coinbase, have come together to establish a coalition. Their goal is to tackle online fraud on various platforms such as social networks, dating applications and even crypto platforms.

This new coalition, dubbed “Tech Against Scams”, aims to find practical solutions to combat the techniques used by online fraudsters. Moreover, it seeks to enhance the public’s awareness of different types of financial scams. Ripple, Kraken, Match Group (parent company of Tinder and Hinge), Gemini, and the Global Anti-Scam Organization are also members of this promising initiative.

The coalition will share vital information about online scams, including best practices, threat intelligence, and tips to help ensure the safety of users before they fall victim to various online frauds like romance scams or crypto scams as ‘pig butchering’.

Tackling Online Fraud Collectively

Guy Rose, Meta’s Chief Information Security Officer, shares the rationale behind this united front. He mentions that the criminal groups behind online scams target people across various internet services. It’s a tremendous challenge for one company to track this breadth of malicious activities, hence the imperative to avoid working in silos.

Both Rose and Yoel Roth, VP of Trust & Safety at Match Group, believe that cross-industry collaboration is indispensable to outpacing the ever-evolving financial crimes and developing effective solutions.

Philip Martin, Chief Security Officer at Coinbase, believes in the importance of this collaboration. He notes the rising complexity of fraudulent schemes, underscoring the crucial need for industry leaders to collaborate for safer digital spaces.

Understanding the Problem at Hand

One key type of online fraud this coalition aims to tackle is ‘pig butchering’, a long-term scam related to investment fraud. Victims are often enticed on social apps to make crypto investments, with the scammer gradually gaining their trust before robbing them of their funds.

The sophistication of these scams backed by AI blurs the line between genuine interactions and deceptive ones. Scammers often employ AI in crafting persuasive communication via FaceTime calls, phone calls and emails, posing as anyone from friends and family to IRS agents.

Frequently Asked Questions

**What is the Tech Against Scams Coalition?**
Tech Against Scams is a new coalition formed by major tech companies including Meta and Coinbase. It aims to tackle online fraud, from social media and dating apps to crypto platforms.

**What are the objectives of the coalition?**
The coalition seeks to find methods to battle online scam tools, promote awareness on financial scams, and share essential information on online threats. They intend to collaborate and share insights to break up scam networks and assist in user safety.

**Who are the members of this coalition?**
The coalition members include Meta, Coinbase, Match Group (parent company of Tinder and Hinge), Kraken, Ripple, Gemini, and the Global Anti-Scam Organization.

**What is ‘pig butchering’?**
Pig butchering is a type of scam where fraudsters lure victims into crypto investments on social apps. They gradually gain the victim’s trust and then steal their investment.