Binance Claims to Have Prevented $2.4 Billion in Scams
Date: 2024-08-21 Author: Oliver Abernathy Categories: BUSINESS
On August 20, Binance announced that its anti-fraud and scam efforts have protected over 1.2 million users worldwide.
The exchange attributes this success to its real-time risk management and monitoring system, emphasizing that user safety is its top priority.
How Binance Prevented $2.4 Billion in Scams
From January to July 2024, Binance’s risk management system detected and prevented numerous fraudulent transactions. The system, which combines artificial intelligence and manual verification, continuously monitors all transactions on the Binance platform.
The system is designed to dynamically identify suspicious activity and quickly take action to protect users. According to Binance, of the $2.4 billion that was prevented, more than $1.1 billion (around 45%) were due to suspicious withdrawal attempts. In these cases, the attackers attempted to move funds outside of Binance’s security perimeter, but the system successfully stopped these transactions.
A Layered Approach to Security
Binance takes a comprehensive approach to security that includes various controls to minimize risks across the platform. These measures apply to various platform features, including user-to-user trading, payments, and withdrawals.
The exchange has implemented tools such as customizable push notifications, time delay features, and alerts to warn users of potential risks. Binance also provides users with multiple channels to appeal and resolve issues if their transactions are flagged as suspicious.
In addition, as of July 31, 2024, Binance has recovered over $73 million in lost or mistransferred funds for third-party users. This includes recovering large amounts of money and freezing illicitly obtained assets that have entered the exchange.
Working Together with the Industry and Public Sector
Binance actively collaborates with industry peers and government agencies to support users who have been affected by fraud and scams. Fund recovery and freezing efforts show that up to 80% of such activities are related to hacking, exploits, and thefts that occurred outside of the Binance platform.
Despite the progress made, Binance emphasizes the importance of vigilance on the part of users. Binance CTO Rohit Wad urged users to remain cautious, noting:
"While our team has implemented many measures to protect your funds, it is ultimately the users who play a key role in keeping their assets safe. Stay informed, employ sound security practices, and be wary of potential scams."
