Binance has warned its users to be on high alert amid a surge in crypto scams in the United Arab Emirates (UAE). In a press release on Monday, Binance said scammers are impersonating its representatives on WhatsApp to deceive users into handing over confidential information or funds.
“Binance has seen an increase in the social engineering attempts against our industry, which has been observed in social media and other popular messaging applications,” the press release said.
The crypto exchange explained that it will only contact users through official channels like Twitter, Facebook, Instagram, Telegram, and email. “Binance will never contact users via WhatsApp with investment advice, offers, or requests for funds,” it said.
Scammers Impersonate Binance Representatives on WhatsApp
Binance said in a “typical” WhatsApp phishing scam, threat actors create fake profiles impersonating its representatives, often claiming there’s an urgent issue with the user’s account and requesting sensitive information or funds.
The scammers “exploit users’ trust through fake emails, websites, or messages closely resembling legitimate crypto platforms,” Binance explained in its press release.
As the UAE, particularly Dubai, becomes a global financial hub, there has been a notable increase in cryptocurrency-related scams since 2020.
The Securities and Commodities Authority and the Dubai Police’s Digital Assets Crime Section have also warned about crypto frauds. According to Tarek Mohammed, Head of the Dubai Police’s Digital Assets Crime Section, there were hundreds of crypto scams in Dubai in the first half of 2021, with victims losing up to 80 million AED (about $21.7 million).
Scammers use various tactics such as transfer recall scams, peer-to-peer transactions using illicit funds, rubber cheques, and more sophisticated methods like pump-and-dump schemes and giveaway scams.
How to Avoid Crypto Scams
Binance advised users to only trust official platforms, like the Binance app, and to look out for spelling mistakes in messages as that may indicate they’re phishing messages. The company also recommends activating two-factor authentication (2FA) to keep your account safe.
Binance urged users to meticulously examine community groups using its “Keep Yourself Safe From Community Group Scams” guide and check if email addresses are legitimate using Binance Verify.
In addition, we also recommend that you:
- Avoid sharing personal information or engaging with anonymous contacts.
- Use strong, unique passwords for each account.
- Regularly update and scrutinize security settings on your accounts and devices.
- Store your crypto assets on hardware wallets.
Read our guide to cryptocurrency scams to learn more about how cybercriminals work and how to protect yourself.
“Binance remains steadfast in its commitment to user safety and protection, information security, and ongoing education initiatives to ensure that users are well-equipped to navigate the dynamic landscape of the digital realm securely. Staying informed and vigilant against evolving phishing tactics is key to safeguarding against fraudulent activities,” Binance’s Chief Information Security Officer Nathan Swain stated in the press release.
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Binance should have a dedicated call centre support to address and register such reporting of scam to proactively launch investigation. however bianance seems to support the scammers by only issuing warnings to investors and not taking any step at its own to protect the investors falling prey to this threat.
Binance actually does offer support, and they invite users to report scams there. You can read more about this on this Binance FAQ page. They specifically mention that you can report scams in which "A fake Binance representative is contacting you by phone, text message, or email to request a transfer," so definitely let them know there if you've received a message like that yourself!