Cybercriminals are impersonating Binance representatives to deceive users into transferring their crypto funds to fraudulent wallets, authorities warn.

How the Scam Works

Scammers contact victims through SMS messages or encrypted messaging platforms, claiming their Binance accounts have been compromised. They:

🔹 Send fake verification codes to gain trust.
🔹 Provide fraudulent phone numbers that direct victims to scammers posing as Binance support agents.
🔹 Persuade users to transfer assets to a so-called “trust wallet” for security reasons.
🔹 Once funds are sent, they are irretrievable, as the wallet is entirely controlled by scammers.

130+ Victims Identified

Authorities have already identified over 130 individuals who may have fallen for the scheme. This scam was uncovered during Operation Firestorm, an international law enforcement initiative targeting cybercriminals operating within the digital finance space.

Crypto Fraud on the Rise

In 2023, total losses from fraudulent crypto schemes exceeded $1.3 billion, highlighting the growing risks within the industry.

Binance Assists, But Faces Legal Issues

While Binance Australia cooperated with authorities to track down scammers, the exchange itself is under legal scrutiny. In December 2023, the Australian Securities and Investments Commission (ASIC) filed a lawsuit against Binance Australia Derivatives, accusing it of misclassifying retail investors and violating margin trading regulations.

Australia’s Push for Crypto Regulation

To combat fraud and market manipulation, Australian regulators have proposed a mandatory licensing framework for crypto service providers. Authorities hope that requiring crypto companies to obtain a financial services license (AFS) will help reduce scams and improve industry transparency.

📌 Stay vigilant! Always verify Binance support contacts directly on their official website before taking any action.