In a concerted effort to tackle the growing menace of online fraud and financial scams, some of the biggest tech firms and crypto exchanges have joined forces to launch the 'Tech Against Scams' alliance. The coalition includes industry heavyweights such as Meta, Coinbase, Ripple, Kraken, Gemini, Match Group, and the Global Anti-Scam Organization (GASO).

The cross-industry alliance aims to pool insights and expertise from various sectors to protect and educate users, emphasizing that scams are a tech-wide issue, not limited to social media, crypto, or finance. According to the Global Financial Fraud assessment by the International Criminal Police Organization (INTERPOL) released in April, the global embrace of new technologies is "enabling organized crime groups to better target victims around the world." Perpetrators are increasingly using deception strategies like pig-butchering, which entail fraudsters gaining victims' trust before stealing from them.

The use of AI, large language models, and cryptocurrencies has resulted in more sophisticated frauds with little cost, INTERPOL stressed. As a result, the Tech Against Scams initiative creates a safer digital environment and prevents scammers from exploiting users. Coinbase noted that their collaboration across sectors will enhance visibility and help develop evolving best practices to combat rapidly evolving scams, such as pig butchering.

Estimates suggest that consumers worldwide lose $1.4 trillion to financial scams every year. The coalition primarily aims to help users recognize the early signs of whether they are in contact with a scammer. The alliance focuses on educating users about scam strategies and tactics and how to prevent them. Yoel Roth, VP of Trust & Safety at Match Group, emphasized the importance of tech companies across industries collaborating with each other to prevent criminal activity and develop effective solutions for various types of financial crimes.