Key players in the crypto and technology sector, such as Coinbase, Ripple, Meta, Kraken, and Gemini, have joined forces to combat online fraud.
Crypto scams: a growing concern
In 2023, total losses from crypto scams were estimated at $4.6 billion, showing a slight decrease from 2022’s $6.5 billion (Chainalysis).
As for 2024, while the year is not yet over, unfortunately, it seems these figures are trending upwards again.
In 2023, approximately $24 million in crypto was stolen through identity theft, over a year. Already in 2024, $17 million has been stolen using this method since the year began.
In 2023, around 1.2 million individuals fell victim to these scams, with an average loss of $4,666 per person.
Geographically, the most affected regions are the United States, Europe, and Asia, accounting for 35%, 30%, and 25% of the losses, respectively.
Notable examples include the XYZ ICO, which attracted $200 million before vanishing, affecting over 50,000 investors, while a phishing campaign impersonating Binance deceived over 10,000 people, resulting in $50 million in losses.
Introducing the new coalition named “Tech Against Scams,” announced by Match Group, including leading companies like Coinbase, Meta, Kraken, Ripple, Gemini, and the “Global Anti-Scam Organization.”
“Tech Against Scams will be a platform where participating tech companies collaborate to take action against tools used by scammers, educate and protect consumers, and disrupt rapidly evolving financial scams.”
A collective effort to educate and safeguard consumers
The coalition aims to share best practices, threat intelligence, and other tips to protect users before they fall victim to online scams.
Drawing on years of “independent experiences” combined to safeguard their users, the coalition aims to create new operational frameworks that establish and enforce industry-wide best practices for scam prevention.
One of the coalition’s initial goals is simply to facilitate information exchanges among relevant authorities across multiple countries. Indeed, one of the main challenges for authorities in tackling scams is that they are typically international and therefore difficult for local authorities to trace.
By establishing strong relationships with authorities worldwide, the coalition hopes to enhance the effectiveness of online fraud investigations, thus strengthening the global ecosystem.
“Fraud schemes are becoming increasingly sophisticated, underscoring the heightened importance for industry leaders to come together to combat fraud and secure a safer digital environment for users. […] We are committed to disrupting emerging online scams through collaboration, information sharing, and better consumer education.”
Philip Martin, Coinbase’s Security Director