With a surge in digital currency scams, crypto exchanges are taking a cognitive approach to combat this menace. In a panel discussion during the Intersekt 2023 fintech conference in Melbourne, identified that the focal point of preventing scams is to “break the trust” between victims and scammers.
Executives from major Australian crypto firms such as Cointree, CoinSpot, and Swyftx highlighted the need to foster constant and open communication with users as a preventive measure. Among the myriad of countermeasures employed, these platforms are utilising automated and manual Anti-Money Laundering (AML) checks, investigations, education, and of course, communication.
Particularly, CoinSpot’s AML officer Jedda Stocks-Ramsay placed importance on “just talking” to customers. Stakeholders have observed the efficacy of this approach and how speaking about scams brings in the much-needed attention to the social engineering aspect of it. CoinSpot has put a concerted emphasis on making customers comprehend the issue of trust that the scammers attempt to build with their victims.
Whilst such efforts have been promising, success in combating scams in the digital currency realm is not solely confined to the crypto industry. The collaboration doesn’t simply halt at crypto exchanges; it transcends beyond, into the social media platforms, banks, telecoms, among others.
However, with increasing scams and the need to protect customers, the crypto industry at large is often berated or shouldered with the blame unfairly. CEO of Cointree, Jess Renden opined that cryptocurrency scams aren’t “crypto’s fault”. Renden further highlighted how crypto firms in Australia have been actively communicating not just among themselves, but also with regulators and other businesses, for continued support towards countermeasures.
Despite proactive measures, data appears grim with the Australian Competition and Consumer Commission reporting that Australians lost approximately $150 million to investments where cryptocurrency was used in 2022, reflecting a spike of over 160% from the previous year.
To summarise, addressing the elephant in the room – scams in the crypto sphere are complex, involving multiple stakeholders including crypto users, exchanges, regulators, social media platforms, banks, telecoms, and others. Thus a concerted effort involving education, communication, and regulatory interventions is paramount going forward.
Source: Cointelegraph
