Binance is launching a joint anti-scam campaign with law enforcement agencies around the world to combat and prevent financial scams in the crypto world.
The exchange said that crypto is vulnerable to scams because people can easily be tricked into voluntarily giving out sensitive information — like private keys to a wallet — to the wrong party. The exchange added that some key factors in preventing such scams are awareness and education.
Scammers employ sophisticated methods like social engineering to trick people into disclosing personal information that can lead to the loss of their assets, and raising awareness around these methods and how to avoid them is critical.
How it works
Binance carried out an initial pilot phase of the program in Hong Kong in collaboration with the local police force.
The exchange leveraged law enforcement resources to supplement a warning message that goes out to users before they withdraw funds or conduct transactions. It warns them of potential scams and offers resources for identifying and reporting scammers.
Binance said the program has had a meaningful impact in the first month of its launch and helped roughly 20% of users either reconsidered transactions after seeing the message or chose to review further before conducting them.
The exchange said it will roll out the program to more jurisdictions in the coming months and is working on establishing partnerships with local police and government agencies for the necessary resources.
The exchange said it will continue to cooperate with law enforcement agencies and provide the necessary support and training needed to help prevent crypto-based crimes and scams.
The anti-scam campaign is the latest in multiple crime prevention and reporting programs deployed by the exchange, which also include a portal where law enforcement agencies can submit case requests.
The exchange recently contributed to seminars and conferences conducted by the Hong Kong Police Force related to combatting cybercrime through its training and education programs in Hong Kong and intends to replicate that in other countries around the world.