Binance launches campaign against crypto fraud
Crypto exchange Binance has launched its joint anti-fraud campaign in partnership with law enforcement agencies worldwide to combat an alarming upward trend in cryptocurrency-related fraud.
In this regard, Binance stated:
“So far, the project has achieved impressive results.”
Below are the details.
Binance Against Crypto Scams
As expected, cryptocurrency exchange Binance announced on Friday that it recently launched a campaign to combat cryptocurrency-related scams in partnership with law enforcement.
Noting an alarming upward trend in both traditional and cryptocurrency-related scams, Binance said it has engaged in discussions with law enforcement agencies around the world on how combat and prevent such crimes.
The cryptocurrency exchange specifically said:
“We recently launched the joint anti-fraud campaign in partnership with law enforcement agencies around the world.”
The campaign started in Hong Kongwhere Binance worked with local police forces to create a specific crime alert and prevention message that included helpful tips, examples of the most common scams, and relevant resources and contacts.
The global cryptocurrency company said the project has achieved outstanding results so far. It also observed that in the first four weeks since its launch, approx 20.4% of users reconsidered withdrawing or checked whether the transaction involved a risk of fraud.
Statements Regarding Binance’s Anti-Crypto Scam Campaign
The Bureau of Cyber Security and Technology Crime (CSTCB) of the Hong Kong Police Force was quoted by Binance as saying:
“The Hong Kong Police attach importance to effective crime prevention. As a result, we have teamed up with various stakeholders, including Binance, to provide important crime prevention advice to interested users.”
Not only that, Binance also explained that it is now looking to work with law enforcement agencies in other regions as it advances its other anti-fraud initiatives, concluding:
“The joint anti-fraud campaign complements our existing anti-crime and crime prevention initiatives around the world.”
The cryptocurrency exchange’s existing anti-fraud initiatives include general operational assistance from law enforcement and Global Law Enforcement Training Programannounced last year.
Anyway, blockchain data analytics company Chain analysis also released a report last week saying cryptocurrency fraud revenue is down 46% in 2022.
However, some types of crypto scams are on the rise, including the alarming scams that the US Federal Bureau of Investigation (FBI) has repeatedly reported.
Meanwhile, Binance and its associated platform, Binance USAa separate entity, is currently being investigated by US senators for potentially illegal business practices.
Chain Analysis and the Crypto Fraud Report
Blockchain data analytics firm Chainalysis released its 2023 report on crypto crime last week with a section on crypto fraud. The report states that fraud revenue from cryptocurrency fell by 46% in 2022.
Specifically, there is the following explanation:
“Revenues from crypto fraud fell significantly in 2022, from $10.9 billion a year earlier to just $5.9 billion.”
Chainalysis tracks several types of crypto scams including giveaway scams, impersonation scams, investment scams, non-fungible token (NFT) scams and romance scams.
While noting that the numbers are a lower estimate, the blockchain analytics firm explained that estimates of the actual amount fraudsters lose will increase as we identify more addresses linked to fraud.
The company specifically mentioned “pig slaughter” scams that have become alarming. The Federal Bureau of Investigation (FBI) has warned about this type of cryptographic scam many times. Last November, US authorities seized seven domains used by fraudsters.
Regarding decrease in income from crypto fraudChainalysis said:
“We attribute most of this decline to market conditions, as fraud performance tends to deteriorate when cryptocurrency prices fall.”
In particular, Chainalysis described that fraud revenue from cryptocurrency started the year at one upward trendbut plunged in early May, at the same time as the bear market began after Terra Luna collapse, and then fell steadily throughout the rest of the year.
