Binance launches a joint campaign against fraud with law enforcement agencies worldwide to combat and prevent financial fraud in the crypto world.
The exchange said the cryptocurrency is vulnerable to fraud as people can easily be tricked into voluntarily providing sensitive information – such as private wallet keys – to the wrong party. The exchange added that some key factors in preventing such scams are awareness and education.
Fraudsters use sophisticated methods such as social engineering to trick people into revealing personal information, which can lead to the loss of their assets, and raising awareness of these methods and how to avoid them is crucial.
How it works
Binance conducted an initial pilot phase of the program in Hong Kong in cooperation with the local police.
The exchange uses law enforcement resources to supplement the warning message that goes out to users before they withdraw funds or make transactions. It alerts them to potential scams and offers resources to identify and report scammers.
Binance said the program had a significant impact in the first month since its launch and helped roughly 20% of users either reconsider transactions after seeing the message or choose to review further before committing them.
The exchange said it will roll out the program in more jurisdictions in the coming months and is working to establish partnerships with local police and government agencies for the necessary resources.
The exchange said it will continue to cooperate with law enforcement and provide the necessary support and training needed to prevent crypto-based crimes and fraud.
The anti-fraud campaign is the latest in a slew of crime prevention and reporting programs implemented by the exchange, which also include a portal where law enforcement agencies can submit case requests.
The exchange recently contributed to seminars and conferences held by the Hong Kong Police Force related to fight against cybercrime through its training and education programs in Hong Kong and intends to replicate this in other countries around the world.
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