With a modern safety component, Binance is improving its protection against cryptocurrency SMS frauds. This measure is a response to a rise in phishing attempts, such as the one that recently impacted Web3 fan Joe Zhou.
Other significant digital currency platforms have also been objectives. According to blockchain investigator ZachXBT, Coinbase customers were severely impacted between December 2024 and January 2025, losing a stunning $65 million to social engineering frauds. These fraudsters utilized phishing emails, fraudulent customer support calls, and bogus websites to deceive users into handing over their cash under the appearance of “security verification.”
Zhou’s circumstance is only one instance of the current surge of phishing assaults targeting cryptocurrency users. Just one week prior, on February 18, the Cyprus Police’s cybercrime division issued a warning about the increase in SMS scams. Scammers acting as Binance authorities send messages that seem legitimate, tricking users into revealing their login details. Once they’re in, they empty the accounts.
Binance hasn’t revealed precisely how this new safety element will function, but it’s intended to assist users identify these SMS frauds.
Zhou was victimized by a fraud that seemed to be from Binance, claiming his account was being accessed from North Korea. The fraudsters, pretending to be Binance representatives, persuaded him to create a SafePal wallet and transfer his funds there. He grew suspicious and contacted his Binance contact, who verified he’d been scammed. When he tried to recover his assets, the scammers withdrew additional funds, but his transaction failed due to gas fees. Solana Futures ETF Debuts, Value Climbs: We’re Demolishing Obstacles
The embezzled capital was subsequently sanitized via bridging and blending platforms such as Tornado Cash.
The magnitude of detriments tied to impersonation is immense. As per a CertiK analysis, in 2024, an aggregate of $2.36 billion vanished in 760 on-chain defense episodes, a surge of 31.61% relative to the prior annum. Impersonation offensives embodied $1.05 billion in detriments, approximating half of the aggregate. The subsequent trimester of 2024 was notably ruinous, with 67 impersonation offensives culminating in $433.7 million in detriments. This accentuates the ever-existent and advancing menace of impersonation in the crypto domain, where assailants are perpetually refining their methodologies to capitalize on frailties and embezzle capital.
