Red flags include unsolicited messages about account breaches, urgency to act quickly, and requests for seed phrases or fund transfers.
As per reports, the scam involves fraudsters sending text messages that look like official Binance alerts. They use a similar sender ID as real Binance messages. The message claims there has been a security breach and tells users to set up a new wallet.
Victims are then given a fake support number. If they call, scammers instruct them to move their crypto to a “trust wallet.” This wallet is actually controlled by the scammer. Once the funds are transferred, they are quickly moved through multiple wallets, making it hard to recover.
The scam appears convincing since the fraudulent texts appear inside legitimate Binance message threads. Experts claim this is possible due to a possible loophole in telecom services, which allows messages to be sent under a company name instead of a phone number.
This isn’t the first time scammers have used this trick. Similar fake messages impersonating Coinbase and Gemini were reported on March 14, trying to steal users’ funds by tricking them into setting up wallets with pre-generated recovery phrases.
To fight back, the AFP has been contacting victims directly via email and text to warn them. In addition, the Australian government has announced an SMS Sender ID Register, expected to launch in late 2025. This system will require telecom providers to verify the legitimacy of branded messages.
Binance’s Chief Security Officer Jimmy Su warns users to be cautious. Red flags include unsolicited messages about account breaches, urgency to act quickly, and requests for seed phrases or fund transfers. If in doubt, verify through official Binance channels, like the website.
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
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