• Binance is launching a campaign to prevent users from being scammed by issuing targeted alerts.
• The new program was first tested in Hong Kong, and responses were positive.
• Binance intends to expand the campaign into other jurisdictions by collaborating with law enforcement agencies.
Binance Launches Anti-Scam Campaign
Binance, in cooperation with law enforcement agencies, is launching a campaign to prevent scams by issuing targeted alerts to potential victims, according to a March 3 blog post from the company.
Pilot Program in Hong Kong
The project, called the “Joint Anti-Scam Campaign,” was rolled out first in Hong Kong, and the company now intends to expand it into other jurisdictions. When users tried to make withdrawals, they were subjected to warning messages that gave them information about common scams and tips on how to avoid scams. Over the course of four weeks, Binance investigated customers’ responses to the messages and found that approximately 20.4% of users either decided not to make the withdrawal or investigated further to determine whether the transaction might be a scam.
Features of Warning Message
The warning message featured statistics on the number of scams that occurred in Hong Kong in 2001 and recommended resources such as Scameter, the Anti Deception Coordination Center, Cyber Defender and Binance Verify. It also instructed users that Binance will never call them directly.
Recurring Problem for Crypto Users
Social engineering and phishing scams have been recurring problems for crypto users. In February, scammers allegedly created a fake version of the ETHDenver convention website which they then used to trick users into giving away their crypto by calling a function on a malicious contract. Over $300,000 worth of crypto is believed to have been stolen through this attack alone.
Expanding Into Other Jurisdictions
As part of its plans for expansion outside of Hong Kong, Binance will collaborate with police forces in other jurisdictions so they can create tailor-made warning messages for customers there as well. The company believes that this expansion will help it protect more members against falling victim to these kinds of scams.