Binance is starting a campaign to stop scams by sending tailored alerts to potential victims in conjunction with law enforcement organizations.
The “Joint Anti-Scam Campaign” project, which the corporation is currently planning to expand into additional jurisdictions, was initially launched in Hong Kong.
In accordance with the company’s post, it worked with the Cyber Security and Technological Crime Bureau of the Hong Police Force to create a “alert and crime prevention message” aimed at Hong Kong citizens.
As part of the pilot initiative, users who attempted to withdraw funds were met with warning messages that provided them with details on typical scams and advice on how to prevent them.
Binance looked into how users reacted to the messages over the course of four weeks. It was discovered that roughly 20.4% of customers either chose not to make the withdrawal or further looked into whether it would be a scam.
The alert provided data on the quantity of frauds that took place in Hong Kong in 2001 and suggested websites like Scameter, the Anti Deception Coordination Center, Cyber Defender, and Binance Verify as useful resources.
However, it warned consumers that Binance would never give them a direct call. Binance views the trial initiative as a success and intends to work with law enforcement in other countries to provide customized warning messages for users outside of Hong Kong.
For cryptocurrency users, social engineering and phishing schemes have consistently been an issue. Scammers allegedly built a fake version of the ETHDenver convention website in February and exploited it to mislead people into handing over their cryptocurrency by invoking a bad contract’s function.
Cryptocurrency estimated to have been taken through the scam for over $300,000. Another case was a well-known nonfungible token booster who, after being tricked into visiting a phishing website, had almost $300,000 worth of CryptoPunks taken from his wallet.
