Binance, in cooperation with law enforcement agencies, launched a campaign to prevent fraud by issuing targeted alerts to potential victims, according to a March 3 blog post from the company. The project, called the “Joint Anti-Scam Campaign,” was first launched in Hong Kong, and the company now plans to expand to other jurisdictions.
Protect the ecosystem and us #Binance A safe community is the core of what we do.
That’s why we partnered with law enforcement agencies around the world to launch a Joint Anti-Scam Campaign.
Read on to see what it’s all about ⤵️ https://t.co/q9LOtuZm2F
– Binance (@binance) March 3, 2023
According to the company’s post, they are working with the Hong Kong Police Cyber Security and Technology Bureau to build “warning and crime prevention messages” targeted at Hong Kong residents. As part of the pilot project, when users try to make a withdrawal, they are hit with a warning message that provides information about common scams and tips on how to avoid them.
For four weeks, Binance investigated customer responses to the message. It found that approximately 20.4% of users decided not to withdraw or investigate further to determine whether the transaction was fraudulent.
The warning provides statistics on the number of frauds that occurred in Hong Kong in 2001 and recommended resources such as Scameter, Anti Deception Coordination Center, Cyber Defender and Binance Verify. It also instructs users that Binance will not call directly.
Related: Scam alert: Trezor warns users about new phishing attacks
Binance considers the pilot program a success, and plans to work with police in other jurisdictions to create special warning messages for customers outside of Hong Kong.
Social engineering and phishing scams have been an ongoing problem for crypto users. In February, scammers allegedly created a fake version of the ETHDenver convention website, which was then used to trick users into giving away crypto by calling a function in a malicious contract. More than $300,000 worth of crypto is believed to have been stolen through the scam. In another example, a nonfungible token promoter had more than $300,000 worth of CryptoPunks removed from his wallet when he was apparently tricked into interacting with a phishing site.