Binance CEO Warns Users of Massive SMS Phishing Scam

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Binance CEO Warns Users of Massive SMS Phishing Scam For Hannah Perez

Binance users are receiving a text message to stop an alleged unauthorized withdrawal that redirects them to a fake site that steals their cryptocurrencies.

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The CEO of BinanceChangpeng Zhao, is alerting users of the world’s leading cryptocurrency exchange about a “massive” phishing scam being carried out via text messages.

Zhao, nicknamed ‘CZ’, went this Friday to Twitter to report that apparently some clients of the platform have been receiving text messages (SMS) to their mobile phones with an alleged link to cancel unauthorized withdrawals. The link would lead users to a fake site that mimics Binance to steal your credentials and empty your cryptocurrency wallet.

There is a massive SMS phishing scam with a link to cancel withdrawals. It leads to a phishing website to collect your credentials as seen in the screenshot below. NEVER click on links in SMS. Always go to http://Binance.com through a bookmark or by typing.

The CEO’s alert message includes an image showing the fraudulent message that has allegedly reached some of the users. “[Binance] A withdrawal has been requested from an unknown IP address. If it wasn’t you, follow the steps below“, Says the message from the scammers along with a link.

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As such, the scam consists of sending users a text message posing as the platform with a link to cancel supposed withdrawals. The link in question then leads them to a fake website designed to harvest their login credentials and steal their cryptocurrency funds.

The fraud modality is what is known as ‘phishing‘, a type of attack in which cyber fraudsters mimic a trusted company, website, or application to steal passwords and extract funds.

Phishing scams and other crypto hacking attacks

Frequently targeting users of banking and other financial services, these types of scams are no stranger to the digital currency space. Late last year, an investigation found that a series of phishing attacks targeting crypto wallet users such as meta mask Y Phantomhad stolen more than $500,000 worth of cryptocurrencies.

Shortly after, DailyBitcoin reviewed the story of a collector of tokens non-expendable assets (NFT) that lost more than $2 million in various digital assets from valuable collections. The theft of the NFTs occurred when the user accessed a contract from a platform that appeared to be genuine.

Phishing attacks are one of the many fraudulent strategies used by hackers to steal cryptocurrencies. Just this week the digital currency space witnessed one of the biggest hacks in recent times when the protocol cross chain wormhole suffered a exploit of USD $325 million.

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Aware of these types of threats, Binance recently announced a $1 billion fund to cover potential hacking attacks. This lifeline is applied to compensate victims of hacks that occur when the “security measures” of the exchange fail, so it does not cover losses caused by phishing attacks.


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Article by Hannah Estefanía Pérez / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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