Announcing the Tech Against Scams Coalition

At Coinbase, we’re working hard to help update the financial system, and make it more safe and secure. While only 0.34% of blockchain transactions are used for illicit activity, and cash remains the preferred medium for illicit transactions, crypto security is always a top priority. Coinbase maintains a robust compliance program, which includes KYC checks, sanctions screenings, suspicious activity reporting, and strong law enforcement partnerships to prevent and detect illicit activity on our platform.

Today, we are excited to announce a groundbreaking initiative aimed at combating scams across the tech industry. Coinbase, in collaboration with Match Group (the parent company of Tinder and Hinge), Meta, Kraken, Ripple, Gemini, and the Global Anti-Scam Organization (GASO), has launched the Tech Against Scams coalition. This partnership is dedicated to preventing online fraud and financial schemes that target consumers across various industries. By sharing insights and knowledge about the lifecycle of scams, we aim to provide resources to educate and protect consumers. Our collaboration across sectors will enhance visibility and help us develop evolving best practices to combat rapidly evolving scams, such as “pig butchering.”

The Broader Tech Issue of Scams

Scams are not limited to social media, cryptocurrency, finance, or dating apps; they are a pervasive issue across the entire tech landscape. Addressing this challenge requires a collective effort from all of us. By joining forces, we can create a safer digital environment and prevent scammers from exploiting and hurting users.

The Tech Against Scams Coalition serves as a primary convening body where participating tech companies will collaborate on ways to take action against the tools used by scammers, educate and protect consumers, and disrupt rapidly evolving financial scams. This work will include sharing best practices, threat intelligence, and other tips and information to help keep users safe and protected before they become victim to an online fraud scheme.

Prevention Through Education

While illicit activity represents less than 0.5% of crypto transactions, the impact on victims can be devastating and life-changing. It’s estimated that consumers worldwide lose $1.4 trillion to financial scams every year. At Coinbase, we pride ourselves on being the most trusted crypto exchange. However, no platform, regardless of its safety measures and sophisticated security technology, is immune from users potentially falling victim to scams. Therefore, it is imperative to stay safe and recognize the early signs that you may be in contact with a scammer.

Consider all the platforms you use daily—messaging apps, social media, dating sites, and e-commerce marketplaces. These are all potential channels for scammers to make initial contact. Scammers are adept at building trust and making their targets feel comfortable. While targeted individuals may believe they are communicating with one person, there is often an organized team of scammers behind the scenes tricking people on an industrial scale.

To help protect yourself, here are some best practices:

• Avoid Third-Party Apps: Don’t download apps you’re not familiar with.

• Be Cautious with Assets: Never send your assets to anyone you don’t know in real life.

• Discuss with Trusted Individuals: Talk about potential investment opportunities with friends and family.

• Use Reputable Platforms: Use reputable crypto wallets and exchanges. Remember, your private keys and seed phrases are for your eyes only.

• Stay Informed: Educate yourself about scams. A great place to start is the Coinbase help site, which offers numerous resources on identifying and avoiding scams.

Together, through education and collaboration, we can protect our community and uphold the promise of a secure and fair financial future. Stay vigilant, stay informed, and stay safe.