TRM Labs Taps Swyftx to Tackle Crypto Scams in Australia

Last updated: November 28, 2023 06:16 EST
. 2 min read

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TRM Labs has announced a partnership with Australian digital asset exchange Swyftx to reward virtual asset users who take steps to protect their accounts against fraudulent actors in the country.

In a recent press release, the blockchain analytics firm announced that it would be the first world trial aimed at incentivizing users to strengthen security amid the high number of scams recorded this year.

“TRM Labs, the leader in blockchain intelligence solutions, and Australian crypto exchange Swyftx launched a world-first trial today that will pay crypto users to protect themselves against fraudsters through training and by enabling stronger security features to protect their accounts.”

Two-factor authentication central to agreement

According to the terms, users will be trained to prevent possible scams and identify bad actors in the market by onboarding new security features on their accounts. Users will be incentivized with 10 Australian dollars worth of Bitcoin (BTC) to activate a two-factor authentication on their account.

Two-factor authentication method has long been deployed by most crypto firms to add an extra layer of security in addition to the usual one-layer passwords. The hallmark of this positive incentive has been hailed as prioritizing security while seeking to drive investment in the market.

Swyftx will pay an initial 2000 users that fulfill the terms of the tests including the completion of an education course created in partnership with TRM Labs to enlighten users on the patterns of bad actors in investment scams.

The course will be offered with its learning platform and is to report suspected cases of fraud to TRM’s scam reprinting subsidiary chainabuse.com, a platform that allows users to flag illegal activity across several chains acting as a public forum with vast data where users can view comments and potential credibility before engaging with networks.

All hands on deck as scams surge

The tests will span one week and merge with the Scam Awareness Week from Nov 27 to Dec 1 with Swyftx going with the theme “Resist, Research, Report.”

Jason Titman, the Chief Operating Officer of Swyftx urged users to sieve through messages to detect potential bad actors through warning signs.

“We’re asking Aussie crypto users to do three simple things. Resist the urge to quickly send money to any crypto wallet that claims to be an investment opportunity. Do research on scams so you can spot the warning signs. And report suspected scams that involve crypto to Chainabuse so we can bring more scammers to justice.”

TRM Labs identified over $9 billion sent to fraudulent actors around the same period when it was reported that Australians have lost $221 million to related scams, a huge 162% surge from 2021 figures.

The Australian government has since ramped up efforts to tackle all forms of industry-related scams including instituting legal actions against certain companies. Some institutions also restricted several cryptocurrency payments citing possible exposure to fraud.