Authorities Issue Warning on Fraudulent Activity
In cooperation with Binance, Australian law enforcement has warned cryptocurrency investors about a sophisticated scam operation that is posing as the international exchange.
Deceptive Tactics and Fake Verification Codes
The Australian Federal Police (AFP), in conjunction with the National Anti-Scam Centre (NASC) and Binance Australia, has alerted more than 130 potential victims of this fraudulent scheme. Authorities discovered the targeted individuals through intercepted messages on an unnamed end-to-end encrypted platform.
These misleading mails, which are allegedly from Binance representatives, make fraudulent claims about the hacking of users’ accounts. Fraudsters use fictitious verification codes in their messages to give their scheme more legitimacy. After being told to phone a certain support number, victims are forced to transfer money to a fictitious “trust wallet” that is controlled by the scammers.
Immediate Fund Transfers and Reduced Recovery Chances
According to AFP Commander of Cybercrime Operations Graeme Marshall, once scammers gain access to victims’ funds, they quickly reroute the assets through multiple wallets, making retrieval extremely difficult.
“The moment funds are transferred, they are moved rapidly across a series of wallets, significantly reducing the chances of recovery,” Marshall warned.
Authorities stress that any individual receiving an SMS or email alert from NASC should treat it with utmost seriousness. Those who have already transferred their cryptocurrency to an unauthorized wallet are urged to contact their bank or digital currency exchange immediately. Additionally, victims should report the incident to the police via ReportCyber, citing reference number AFP-068.
Expert Advice on Preventing Crypto Scams
The Deputy Chair of the Australian Competition and Consumer Commission (ACCC), Catriona Lowe, stressed the value of double-checking communications, even when they seem to be from a reliable source.
Jimmy Su, Binance Australia’s Chief Security Officer, encouraged investors to use the exchange’s official verification tool in the meantime. He cautioned people against disclosing sensitive information and emphasised the importance of being vigilant.
“Never share crucial information such as your seed phrase or transfer funds under pressure. If in doubt, pause and verify through official channels,” Su advised.
As crypto scams become increasingly sophisticated, authorities continue to urge investors to stay informed and exercise caution when dealing with online transactions.
