Prominent US-based cryptocurrency exchange Coinbase has announced a new initiative called 'Tech Against Scams,' in collaboration with industry leaders Meta, Ripple, Gemini, Kraken, Match Group, and GASO.

This coalition aims to combat online fraud and financial schemes while protecting and educating users. It emphasizes that scams are a tech-wide issue, not confined to social media, cryptocurrency, or finance sectors.

In an official blog post, Coinbase explained that the Tech Against Scams coalition will serve as a primary platform where participating tech companies will collaborate to counter the tools used by scammers, educate and protect consumers, and disrupt rapidly evolving financial scams.

The initiative will involve sharing best practices, threat intelligence, and other tips to safeguard users from online fraud before they fall victim.

"By sharing insights and knowledge about the lifecycle of scams, we aim to provide resources to educate and protect consumers. Our cross-sector collaboration will enhance visibility and help us develop evolving best practices to combat rapidly evolving scams, such as 'pig butchering.'"

Coinbase also estimated that consumers worldwide lose $1.4 trillion to financial scams annually.

In 2023, reports from the American public indicated losses exceeding $12.5 billion due to online fraud, a 22% increase from the previous year, according to the FBI’s annual Internet Crime Report.

Among digital crimes, investment fraud led to the highest losses, reaching $4.57 billion, a 38% increase from the previous year. The FBI reported that approximately $4 billion of these losses were linked to cryptocurrency investment fraud.