A new coalition of major tech companies is taking a stand against online scams that have been costing users significant sums. The Tech Against Scams coalition, launched on Tuesday, includes Match Group, Meta, Coinbase, and other prominent players in the industry.

A Growing Problem

Online scams are becoming increasingly prevalent, with victims losing substantial amounts of money to financial scams, romance scams, and crypto-related schemes. According to the U.S. Federal Trade Commission (FTC), romance scams have been costing users more money than any other type of consumer fraud as of 2019.

Romance Scams: A Growing Concern

Romance scams involve individuals being tricked into sending money or investing in fake relationships. The scammers often use social media and dating apps to gain the victim’s trust before stealing their funds. In 2021, U.S. consumers lost $770 million on social media scams, up 18 times over 2017.

Crypto Scams: A Lucrative Business

Crypto-related scams have also become a major concern in recent years. Investment scams led to consumer losses of more than $3.8 billion in 2022, double the amount lost in 2021. The crypto industry is particularly vulnerable to fraud due to its decentralized nature and lack of regulation.

The Scam: "Pig Butchering"

One of the most common crypto scams is known as "pig butchering." This long-term scam involves investment fraud, where the victim is lured into making crypto investments. The scammer often targets users on social apps, befriending them or building trust before stealing their funds.

Using AI to Evade Detection

Scammers are now using AI to create persuasive FaceTime calls, phone calls, and emails that can trick even the most cautious individuals. As Yahoo Finance reported last year, scammers are using AI to pose as loved ones, prospective lovers, friends, or even IRS agents.

The Need for Collaboration

According to Yoel Roth, VP of Trust & Safety at Match Group, collaboration between tech companies is essential in preventing online scams. "Tech companies across industries need to work together to prevent criminal activities and stay ahead," he said. "We will also continue investing in features that disrupt fraud and remove scammers from our platform before they commit harm."

Sharing Information and Best Practices

The Tech Against Scams coalition will share tips and information with one another to protect users from financial scams on their respective platforms. They will collaborate on ways to educate consumers against the ever-evolving crop of financial scams on the market.

Working Together to Combat Online Fraud

Coalition members, including Meta and Coinbase, will also continue to work with law enforcement when necessary to support investigations by sharing information about online fraud and crimes that took place on their platforms. By joining forces, the companies aim to tackle this problem more effectively than they could alone.

The Benefits of Collaboration

Collaboration between tech companies is crucial in preventing online scams. By working together, they can:

  • Share best practices for detecting and preventing financial scams
  • Develop more effective solutions to combat online fraud
  • Support investigations by law enforcement agencies

By uniting against online scams, the Tech Against Scams coalition aims to create a safer digital environment for users.

Conclusion

The launch of the Tech Against Scams coalition marks an important step in the fight against online scams. By sharing information and best practices, tech companies can work together to prevent financial scams and protect their users. The benefits of collaboration are clear: by working together, they can stay ahead of scammers and create a safer digital environment for all.

Stay Ahead of Online Scams

To stay safe from online scams, follow these tips:

  • Be cautious when interacting with strangers on social media or dating apps
  • Research investment opportunities thoroughly before sending money
  • Verify the authenticity of emails and phone calls before responding
  • Report any suspicious activity to your platform’s support team or law enforcement

Stay informed about online scams and protect yourself from financial loss.