Coinbase, Kraken, Join Forces to Combat ‘Pig Butchering’ Scams

Coinbase, Kraken, and other crypto exchanges have come together in an alliance to address and prevent online fraud and scams. 

This group includes well-known crypto companies like Ripple and Gemini, as well as Meta and Match Group (MTCH), the parent company of popular dating apps Tinder and Hinge.

“Pig butchering” refers to a deceptive practice where scammers reach out to individuals on dating apps or social media platforms, establishing trust before presenting a cryptocurrency-related opportunity that promises financial gains.

Crypto Exchange vs. Crypto Scams

Every exchange dreads a security breach as it can cripple operations, erode customer trust, tarnish reputation, and even lead to market downturns. This unfortunate scenario has once unfolded for several prominent crypto platforms like Binance, CoinEx, Gamee Token, and Kyberswap, a decentralized exchange protocol. 

The cryptocurrency industry is constantly evolving, and security is a top priority for companies. However, as crypto firms are beefing up security to keep hackers at bay, cybercriminals are resorting to more advanced techniques.

This has led to unfortunate incidents such as the EVM Chains breach. The digital cryptocurrency protocol lost approximately $55 million to crypto scams. Also, a user lost a staggering $68 million due to address-poisoning exploits, besides Ethereum users fell victim to phishing scams. 

The Federal Bureau of Investigation (FBI) recently reported a significant 53% spike in cases, resulting in losses totaling around $3.94 billion in 2023 in the United States alone, ranking romance scams the highest model explored for this exploit. 

Global Efforts to Crackdown Crypto Crimes

In 2021, TheCoinRise media gave a step-by-step guideline on how to track the activities of a crypto fraud thief using analytics software.

In response to the alarming increase in financial crimes within the crypto industry, Mastercard, a renowned financial service provider, has introduced a tool to combat crypto fraud and financial crimes. Many countries like Hong Kong, and South Korea, and crypto exchanges like Binance are diligent in tackling and exposing crypto fraud. 

The U.S. Securities and Exchange Commission (SEC) has also joined in the fight by taking legal actions against firms involved in crypto crimes 

Tech Against Scam: a vital shield to fight against crypto crimes 

The rise in investment fraud related to cryptocurrencies has become an escalating global concern. It is said that crypto crimes are growing parallel to the crypto market. 

The “Tech Against Scams” coalition, as announced on Wednesday, will act as a coordinating entity where its members work together to combat the tactics employed by scammers and safeguard customers. 

The coalition’s objective is to protect users from online fraud scheme scams like romance scams, crypto scams, and pig butchering by sharing best practices, threat intelligence, and valuable information.