In a proactive move to address the rising threat of online fraud and scams, leading cryptocurrency exchanges Coinbase and Kraken have partnered with other industry giants to form the "Tech Against Scams" coalition. This collaborative initiative aims to combat various forms of online scams by leveraging collective expertise and resources.

The coalition, which includes prominent crypto companies such as Ripple and Gemini, as well as tech heavyweights Meta and Match Group, parent company of popular dating apps Tinder and Hinge, seeks to proactively respond to and prevent fraudulent activities targeting users.

According to a statement released on Wednesday, the coalition will serve as a central hub for member organizations to collaborate on strategies to identify, mitigate, and prevent scams. This collaborative effort will involve the sharing of best practices, threat intelligence, and other pertinent information to enhance user safety and protection.

One particularly insidious scam tactic addressed by the coalition is known as "pig butchering," which involves scammers exploiting trust established through dating apps or social media to pitch fraudulent cryptocurrency investment opportunities. By pooling resources and expertise, the coalition aims to preemptively thwart such scams and protect individuals from falling victim to financial exploitation.

The urgency of this initiative is underscored by alarming statistics revealing the significant financial losses incurred by individuals due to crypto investment scams. According to a report by the Federal Bureau of Investigation (FBI), losses from crypto investment scams in the U.S. alone surged to $3.94 billion in 2023, a substantial increase from $2.57 billion the previous year.

With cybercriminals continuously evolving their tactics to exploit unsuspecting individuals, the Tech Against Scams coalition represents a proactive response from industry leaders to safeguard users and foster a safer online environment. By uniting efforts and sharing insights, the coalition aims to mitigate the impact of online scams and protect users from financial harm.