11 Hong Kong-based Binance customers have fallen victim to fraudulent text messages in a recent wave of phishing scams, according to a warning issued by the Hong Kong police. The alert, shared on October 9 through their “CyberDefender” Facebook page, highlighted a growing concern in the cryptocurrency community.
Investors Lose Over $446,000 In Binance Phishing Attacks
The modus operandi of these scammers involved sending text messages masquerading as Binance, claiming that users needed to click on a link provided to verify their identity details within a stipulated time frame.
The warning emphasized the consequence of not complying—account deactivation. Unfortunately, those who fell prey to this ruse unwittingly handed over their personal information to hackers, who subsequently gained full access to their Binance accounts, emptying their wallets.
The damage inflicted by this phishing scheme has been substantial, with the 11 victims collectively reporting losses exceeding $446,000 (3.5 million Hong Kong dollars) in just the past two weeks.
In response to these incidents, Hong Kong’s police force has urged anyone who suspects they’ve received fraudulent messages to log the suspicious communication on the “fraud prevention” section of their official website. Additionally, they’ve provided a link to a newly published list of verified virtual asset trading platforms, courtesy of the Hong Kong Securities and Futures Commission (SFC).
These phishing attacks add to recent scams and fraudulent activities that have hit Hong Kong’s crypto investors. The JPEX crypto exchange scandal, which unfolded with misleading advertisements and unsustainable returns on lending products, swelled to approximately $180 million in losses. Over 2,300 Hong Kong-based investors have filed complaints with local authorities.
In light of this, the SFC has taken measures to publish a list encompassing both fully licensed and “suspicious” crypto platforms to combat potential fraud, mirroring a similar incident at JPEX, which led to multiple arrests and the shutdown of its services.
A task force comprising the SFC and various law enforcement units, including commercial crime, cybersecurity, technology crime, and financial intelligence and investigations police bureaus, has been established to address these concerns.
The collaboration aims to share information on suspicious activities, assess the risks associated with problematic virtual asset trading platforms, and enhance coordination and cooperation in related investigations.
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