At Ripple, the foundation of our company is based on trust and transparency. We take these values into account in every decision we make, whether we’re sharing the quarterly XRP market reports or seeking industry-wide regulatory clarity. To continue building on these principles, more than ever, we see an urgent need to protect consumers around the world from dangerous online giveaways and counterfeiting on YouTube, Twitter, Facebook and more.
Today we’re taking legal action against YouTube to create an industry-wide behavior change and set expectation of accountability.
This lawsuit tells the video platform to do a number of things. First, to be more aggressive and proactive in identifying these scams before they are published. Second, faster removal of these scams once identified, and finally, so as not to benefit from these scams.
“Giveaway Scam” is an industry term that refers to attempts to defraud money from nondescript consumers through impersonation on social media by convincing people that they will get more money by sending money – usually through Airdrop. These scams impersonate individuals and companies and are often spread via fake social media profiles.
In these times, it is terrible enough that people are worried about losing their lives and livelihoods. Add to this the scams that seem to be everywhere. To raise awareness of this issue, we’ve published a guide on how to detect and protect against online fraud involving digital asset freebies.
However, there is now an increasing threat from the influx of COVID-19 online fraud. The Federal Trade Commission (FTC) released COVID-19 fraud reports in numbers. This alarming release announces that as of January 1, consumers have reported financial losses of over $ 13 million due to COVID-19-related fraud. Enough is enough.
Misinformation affects everyone and we can no longer complain about it. In an emerging industry like crypto and blockchain, fraud and giveaways only hamper the innovation and advancement of the industry.
In response to the numerous XRP-specific giveaways and imitations, Ripple hired an outside cybersecurity and digital threat intelligence provider to help with reporting and eliminating activity. He also created his own submission form for the community to report unusual activity.
There are also individuals and teams in the XRP community such as XRP Forensics, now part of xrplorer.com, doing analysis of possible fraud transactions and tracking of stolen funds on the XRP ledger, as well as monitoring for social fraud postings in real time. They enable wallets, exchanges, and other participants in the XRP Ledger ecosystem to automatically check whether a wallet is associated with such scams and protect users in real time.
Unfortunately, despite all of this incredible work in the XRP community, these efforts are not enough to combat the vast amount of fraud.
For every scam, giveaway, fake conspiracy that is eliminated, several more pop up almost immediately. The reality is that big technology and media companies take responsibility and hold accountability to protect consumers.
This is a call to action.
It is time to end this unacceptable behavior and protect our friends, family members, and consumers everywhere. YouTube and other major technology and social media platforms must be held responsible for not implementing enough processes to combat these scams.
We are here for our community and for everyone, everywhere. Please stay safe, stay healthy, and know that measures are being taken to keep you safe.