Coinbase launches anti-fraud alliance to reduce $1.4 trillion in losses

Compiled by: Blockchain Knight

Coinbase has formed an alliance with industry giants in the technology field to combine resources and expertise to deal with the growing problem of online fraud and financial fraud.

The Technology Anti-Fraud Alliance includes industry giants such as Match Group, Meta, Kraken, Ripple, Gemini and the Global Anti-Fraud Organization (GASO). The alliance emphasizes the need to work together to deal with fraud that is prevalent across platforms and industries.

These companies hope to create a safer digital environment and strengthen consumer protection from fraud by joining forces.

Coinbase said: "Fraud is not limited to social media, Crypto assets, financial or dating applications, etc. They are a common problem in the entire technology field."

"Through this alliance, we aim to share insights, knowledge and best practices to protect users and prevent scammers from taking advantage of users."

The Technology Anti-Fraud Alliance will prioritize several key areas, including blocking fraudulent information, developing the best strategies to prevent fraud, and educating consumers.

Meanwhile, members will share information on fraud tactics and tools used by scammers, and jointly develop and update strategies to combat these scams. The focus will return to educating users to identify and avoid scams, ultimately preventing them from becoming victims.

Although blockchain transactions only account for 0.34% of illegal activities, the impact on victims is huge.

Coinbase emphasized that consumers worldwide lose approximately $1.4 trillion to financial fraud each year. The alliance aims to reduce this number through awareness and protection measures.

Coinbase said: "Despite our robust compliance program, no platform is immune to scams. It is critical that users remain vigilant and informed. By educating consumers, we can help them prevent scams before they happen."

Coinbase also recommends that consumers take preventive measures, such as downloading applications only from trusted sources; avoiding transactions with unidentified individuals; consulting trusted friends and family about potential investments; using reputable Crypto asset wallets and exchanges; and staying up to date with the latest scams.

The ultimate goal of the alliance is to create a safe and fair financial environment that ensures the promise of greater global economic freedom.