Key Takeaways
- Binance has warned users of scammers impersonating its staff members.
- The world’s largest crypto exchange issued a list of precautions users should follow.
- Global crypto scams are continuing to rise around the globe.
Binance, the world’s largest crypto exchange, has issued a stark warning to users about the growing danger of scammers impersonating its staff members.
As the crypto market continues to bullishly grow with increased widespread adoption, scams targeting crypto investors are becoming increasingly prevalent.
Binance Warns Users
On Friday, Nov. 29, Binance released a blog post detailing precautions on how to spot a potential fake exchange employee.
The exchange warned that scammers often impersonate representatives from reputable organizations, creating fake profiles and groups on messaging apps such as Telegram and WhatsApp.
“These fraudulent groups aim to deceive users into divulging personal information or transferring funds under false pretenses,” Binance wrote.
Although Binance assured users that it worked with local authorities to protect against scammers, the exchange warned that users must remain vigilant when handling their funds.
Binance listed essential things to do when interacting with someone they believe to be an exchange official, including using Binance Verify to confirm the authenticity of accounts and emails.
“Binance will never appoint representatives to provide investment advice to users,” the exchange wrote.
The exchange also urged all users to pay extra attention to the details of the accounts, including image quality and proper grammar in messages.
Crypto Impersonation Is Rife
The warning from Binance comes as the number of crypto scams continues to rise globally.
In April, a man pleaded guilty to creating a fake version of Coinbase’s website, allowing him to obtain login credentials to the actual site and steal around $9.5 million of crypto, Fortune reported.
Chirag Tomar was charged with one count of conspiracy to commit money laundering and one count of conspiracy to commit wire fraud.
According to court documents, the 30-year-old created a phony version of Coinbase Pro’s website with a group of co-conspirators.
Tomar used the website to scam over 542 victims out of their crypto by handing over their login info to the fake site.
Global Crypto Scams Are Rising
In the first half of 2024, scammers collected $679 million in cryptocurrency, making it the most lucrative payment method behind only bank transfers, according to research from The Motley Fool.
In 2023, U.S citizens lost $5.6 billion to cryptocurrency scams, marking a 45% increase from a year prior, according to the FBI.
“Scams targeting investors who use cryptocurrency are skyrocketing in severity and complexity,” FBI Director Christopher Wray said.
The FBI believes that the decentralized nature of crypto is a key reason why scams are rising, as hackers are able to pursue quick and irreversible transactions globally.
According to a survey by Regula, synthetic identity fraud, which combines both fake and real identity features, accounted for 46% of reported AI-generated fraud cases.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
