Australian Federal Police warn over Binance impersonation scams, tricking users into transferring funds to scammer-controlled wallets. Through Operation Firestorm, a global initiative to control digital fraud, the authority has identified 130 victims of the scam, struggling to recover their funds.
Australian authorities have launched an investigation into cryptocurrency scams, in which scammers impersonated Binance, the world’s largest cryptocurrency exchange platform, to loot money from citizens. In a joint statement released on Wednesday, the AFP revealed that more than 130 victims have been already targeted in the well-executed scam.
The Australian Federal Police, Binance Australia, and the National Anti Scam Centre have sent texts and emails to alert victims about the scam, which utilized fake messages to steal crypto. The victims were identified through messages seen on an end-to-end encryption platform, deployed as part of Operation Firestorm. In addition to warning victims, the authorities alert the entire Australian cryptocurrency users to beware of such scams.
According to reports, the scammers portrayed themselves as Binance representatives, sending victims fake alerts through SMS, claiming their cryptocurrency account had been compromised. The messages were well-executed into existing Binance chat threads and contained fake verification codes, making them appealing as authenticated messages from Binance.
The scammed message also contained a phone number for contacting the so-portrayed Binance officials. When victims called the number, they were informed that their accounts were at risk which compelled them to transfer their cryptocurrency to a ‘trust wallet’, the one controlled by the scammers. In their urge to secure their funds, victims were left with no other choices and transferred their cryptocurrencies. It was too late when they recognized the scam, by then the funds were looted by the fraudsters through different wallets.
APF Commander Cybercrime Operations, Graeme Marshall has revealed that recovering the lost funds is quite challenging since the looted money is transferred through a network of wallets and money laundering accounts. He also instructed users who transferred the funds to the so-called trust wallet to report the act to their bank, exchange, and police through ReportCyber. He highlighted the support of the NASC (National Anti-Scam Centre) in helping to identify the victims and providing them with guidance to protect their cryptocurrency accounts.
Being the largest exchange platform by trading volume, the Binance platform has become a target of scammers. Last year, the Australian Security and Investment Commission (ASIC) introduced legal proceedings against Binance Australia, claiming the exchange for misclassifying retail investors and refusing them necessary consumer protection rights.
Rising Crypto Scams In Australia
According to the data from the ACCC’s, Australian Competition and Consumer Commission, annual scam report, Australians have lost more than $1.3 billion in investment scams, and of them, crypto scams are the major contributor.
Earlier, the ACCC raised concerns about the potential impact of friendlier crypto regulations in the US, under Donald Trump’s administration and the new SEC Chair, Gina Cass-Gottlieb pointed out that the relaxed crypto environment in the US will bring a horror scenario for investors.
ACCC Deputy Chair Catriona Lowe, highlighted the increased impersonation scams in the country, saying that such scams exploit the user’s trust in the platform, thinking that the text and emails received are legitimate.
The recent scam creates a concern among the Australian crypto community, making them more alert about their investments. Being an unregulated asset, the cryptocurrency exchange platform is widely exploited by fraudsters, and it will not be easy to eradicate such scams, making it the duty of the investors and exchanges to bring strict securities and protect their assets, aligning with the proverb ‘prevention is better than cure’.
What To Do If You Receive a ‘Warning SMS’?
Officers urge receivers of warning SMS and emails from NASC to report to their bank or crypto exchanges since their accounts are hacked by scammers and are at risk. Though the funds are already lost and are difficult to recover, the reporting will prevent the account from further damage.
Authorities have come up with several warning signs to assist people in identifying such scams, including uninvited contacts claiming account breaches, forcing them to act quickly, and requesting to share sensitive information like OTP and asking to transfer money. Once you receive any such messages, phone calls, or emails, you must report it to the police before making any response.
The coordinated effort of the Australian authorities highlights its priority to protect its consumers from cyber scams and attacks.