Fake SMS Messages Target Australians

• Over 130 Australians targeted by scammers impersonating Binance representatives.
• Victims directed to transfer funds to fake wallets, making recovery difficult.
• Binance urges users to verify communications and avoid sharing sensitive information.

The Australian Federal Police (AFP) are currently investigating a widespread cryptocurrency scam in which fraudsters are impersonating representatives of the Binance exchange. 

The scam has already ensnared over 130 Australians, with victims receiving fake SMS messages that cleverly appear within existing conversation threads, lending them an air of legitimacy.

How Are Scammers Using SMS to Impersonate Binance?

The scammers are utilizing SMS and encrypted messaging platforms to convincingly impersonate Binance staff. 

These fraudulent messages typically claim that the recipient’s cryptocurrency accounts have been compromised, creating a sense of urgency and instructing them to secure their funds immediately.

Related: Australian Police Crack Seed Phrase, Seize $9.5M in Crypto

How Does the Scam Work?

Victims are then directed to transfer their cryptocurrency to a “trusted” wallet – one, of course, that is actually controlled by the scammers. 

Once the funds are transferred, the scammers rapidly move them through a complex network of wallets, effectively making it impossible for authorities to track and recover the stolen assets

What Are Authorities Doing to Help Victims and Prevent Further Scams?

The National Anti-Scam Centre (NASC), working in conjunction with the AFP-led Joint Policing Cybercrime Coordination Centre (JPC3), has successfully identified and contacted more than 130 individuals across Australia who were targeted by this sophisticated scam.

Authorities are strongly emphasizing the importance of taking immediate action for anyone who has received these fraudulent communications. Victims are urged to report the incident to their bank or digital currency exchange without delay and to also file a report with the police through ReportCyber, using the specific reference number AFP-068.

Related: Binance Helps Delhi Police Bust Crypto Scam in India

ACCC’s Advice on Impersonation Scams

According to Australian Competition and Consumer Commission (ACCC) Deputy Chair Catriona Lowe, impersonation scams are a growing threat. Scammers are increasingly exploiting people’s trust by meticulously copying the identities of reputable organizations like Binance.

Lowe stresses the critical importance of verifying communications, even if they appear entirely legitimate. Australians are strongly encouraged to contact organizations directly using official contact details found on their websites, rather than relying on any information provided in suspicious messages.

How Is Binance Addressing the Scam and Urging User Vigilance

Binance’s Chief Security Officer, Jimmy Su, has expressed serious concern over these ongoing scams, reiterating that the safety and security of their users remains their top priority. Su explained that scammers frequently exploit loopholes in telecom systems to manipulate sender information and create a false sense of urgency in their targets.

He urged all Binance users to utilize Binance Verify, a dedicated tool specifically designed to confirm the authenticity of communications originating from the platform. Additionally, Su strongly advised against sharing any sensitive information, such as seed phrases, or making any transfers under pressure or duress.

What Action Should You Take if You Suspect a Scam?

If you believe you have been targeted by a Binance impersonation scam, it is crucial to act quickly. Report the incident to your bank or digital currency exchange and file a report with the police through ReportCyber, using the reference number AFP-068.