Binance is introducing fresh security protocols to tackle cryptocurrency text message frauds.
Binance is creating a novel security function to aid individuals in identifying text message frauds.
This action addresses the increasing concern of text message frauds, emphasized by a recent fraudulent attempt aimed at Web3 lover Joe Zhou. The firm has not yet disclosed how the function will operate.
Zhou was the intended recipient of a text message fraud that seemed to originate from Binance. The communication falsely asserted that his profile was being accessed from North Korea. The fraudsters, posing as Binance representatives, persuaded him to establish a SafePal digital wallet. Zhou complied and moved funds. However, he grew wary and subsequently verified with Binance that he had been defrauded. When he attempted to retrieve his holdings, the fraudsters extracted extra funds, but the transaction failed due to gas costs. Ethereum Coders Initiate Hoodi Trial Network for Pectra Enhancement Assessments
Zhou’s circumstance is not unique, as fraudulent attempts targeting cryptocurrency users have been in the headlines lately. Just over a week ago, on February 18th, the Cybercrime Unit of the Cyprus Police released an alert regarding a surge in text message fraud schemes. Fraudsters imitating Binance authorities dispatched authentic-looking messages to deceive individuals into divulging their login details. Once acquired, the fraudsters accessed profiles and stole funds.
Other prominent cryptocurrency platforms have also been targeted. Between December 2024 and January 2025, Coinbase users incurred substantial losses due to social manipulation frauds. Blockchain investigator ZachXBT stated that a minimum of $65 million was pilfered during this timeframe. Attackers employed fraudulent emails, bogus customer support calls, and counterfeit websites to mislead individuals into transferring funds under the pretense of secure verification.
Illegally obtained property is frequently concealed via intermediaries and blending platforms akin to Tornado Cash.
The financial impact tied to fraudulent schemes is astonishing. Based on a CertiK analysis, there existed an aggregate of 760 on-chain safety occurrences during 2024, culminating in overall forfeitures of $2.36 billion, a surge of 31.61% relative to the prior year. Within this figure, deficits stemming from deceptive ploys totaled $1.05 billion, representing approximately 50% of the cumulative sum. The period spanning April to June of 2024 proved notably ruinous, as 67 deceptive maneuvers triggered $433.7 million in detriments.
