Coinbase, Kraken, and Partners Launch Initiative to Battle ‘Pig Butchering’ Fraud

Prominent cryptocurrency exchanges Kraken and Coinbase have teamed up with other major tech companies to fight online scams and fraud. The recently established “Tech Against Scams” group seeks to safeguard customers by combating the strategies fraudsters employ.

The “Tech Against Scams” group was unveiled on Wednesday and will provide a forum for members to work together to combat online fraud. The release states that the group will share threat intelligence, best practices, and practical advice to protect consumers from scams such as “pig butchering” and romance scams.

The term “pig butchering” describes a scam where fraudsters contact victims via dating apps or social media. They gain the victim’s trust and then pitch fraudulent cryptocurrency investment opportunities. Losses from such crypto scams reached $3.94 billion in the U.S. in 2023, a significant increase from $2.57 billion in 2022, as reported by the FBI.

Expanding the Coalition

Notable cryptocurrency firms including Ripple and Gemini are part of the group, in addition to Coinbase and Kraken. Along with Tinder and Hinge’s parent firm, Match Group, and IT behemoth Meta (formerly Facebook) have also joined the coalition. In order to better defend consumers against increasingly complex frauds, this varied collection of businesses seeks to combine resources and expertise.

Collaboration is a key area of concentration for the coalition. Through exchanging knowledge and creating strong security protocols, these businesses want to remain one step ahead of con artists and give people a safer online experience.