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crypto.news 2025-02-26 13:49:02

Binance to introduce new security feature to combat crypto SMS phishing scams

Binance to introduce new security feature to combat crypto SMS phishing scams

Binance plans to launch a new security feature to help users detect SMS phishing scams. Binance plans to introduce a new security feature aimed at helping users identify SMS phishing scams. The decision comes in response to growing concerns over SMS phishing fraud, highlighted by a recent phishing attack targeting a Web3 enthusiast Joe Zhou. The company has not yet provided details on how the feature will work. Zhou fell victim to an SMS phishing scam that appeared to originate from Binance. The message falsely claimed that his account was being accessed from North Korea. The scammer, who posed as a Binance representative, convinced him to create a SafePal wallet. Zhou complied and transferred funds to the wallet. However, he became suspicious and later confirmed with a Binance contact that he was indeed being scammed. As he attempted to recover his assets, the scammer withdrew additional funds before his transaction failed because of gas fees. Zhou’s situation is not an isolated incident as phishing attacks targeting crypto users have been making headlines recently. Just over a week ago, on Feb. 18, Cyprus Police’s cybercrime division issued a warning about an increase in SMS fraud schemes. Scammers impersonating Binance officials sent messages that appeared legitimate, tricking users into revealing their login credentials. Once obtained, the scammers accessed accounts and stole funds. You might also like: Cyprus police warn of large-scale SMS crypto scam impersonating Binance: report Other major crypto platforms have also been targeted. Between Dec. 2024 and Jan. 2025, Coinbase users suffered significant losses due to social engineering scams. Blockchain investigator ZachXBT reported that at least $65 million was stolen during this period. Attackers used phishing emails, fake customer service calls, and counterfeit websites to deceive users into transferring funds under the guise of security verification. The stolen assets were then laundered through bridges and mixing services like Tornado Cash . 2/ Myself and @tanuki42_ spent time reviewing Coinbase withdrawals and gathering data from my DMs for high confidence thefts on various chains. Below is a table we created which shows $65M stolen from Coinbase users in Dec 2024 – Jan 2025. Our number is likely much lower than… pic.twitter.com/ZceQ5AggYU — ZachXBT (@zachxbt) February 3, 2025 The scale of phishing-related losses has been substantial. According to a CertiK report , a total of $2.36 billion was lost across 760 on-chain security incidents in 2024, representing a 31.61% increase from the previous year. Phishing attacks accounted for $1.05 billion of these losses, nearly half of the total amount. The second quarter of 2024 was particularly damaging, with 67 phishing attacks resulting in losses of $433.7 million. You might also like: Crypto phishing losses dropped 56% to $10.2m: ScamSniffer

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