With the festive season already upon us, scammers and fraudsters are having a busy time trying to convince unsuspecting victims of internet fraud to fall for their tricks.
This is even worse because of the advent of crypto currency, something that remains a novice to most people on social media. Much like cash-in transit robberies, the festive season is a time of endless money-making schemes.
Hannes Wessels, Country Head: Binance South Africa said imposter scams were becoming more commonplace with criminals targeting everyday people along with traditional investors and cryptocurrency users. He said these scams always followed a similar format: someone contacts you pretending to be someone they’re not.
These he said include text message, WhatsApp scams, verification code scams, QR code scams, phishing scams as well as account blocking scams.
Just recently a colleague had his WhatsApp account hacked with the hacker targeting his colleagues asking for money to be sent via e-wallet.
Luckily for us no one fell for this trick, but in the past and elsewhere people have fallen prey to a similar scam.
In some cases, these scammers may pretend to be tax officials, government workers and even family members.
5 Common Scams and How to Avoid Them
1. Text Message and WhatsApp Scam
SMS and WhatsApp scams have become one of the most common scams reported by Binance users in Malaysia.
This is where victims receive a text message from a scammer impersonating Binance staff members. The text will claim your account is under attack from a hacker and a Binance staff member with a specific (fake) employee ID will contact you via WhatsApp to help secure your Binance account.
The same scammer sends a WhatsApp message to the user, prompting them to send their coins to a secure, Binance-certified account. Victims who fall for this trick end up sending their funds to the scammer.
Never reply to any text message from anyone who claims to be a Binance staff member. Block and report the numbers to the official Binance security team right after you receive the message.
2. Verification Code Scams.
The verification scam is one of the most common scams in the financial sector. Traditionally, security measures like 2-factor authentication and one-time verification codes make it challenging for scammers to withdraw a user’s funds from Binance, even when they have their login details.
Scammers who successfully log in to a user’s Binance account may be able to initiate a withdrawal request. However, they will be unable to get the cash until they input the verification code.
If you receive a verification code without initiating a transaction, make sure you do not give that code to anyone claiming to be a Binance staff.
3. Corrupt URL (Phishing) Scams.
Before text and verification scams ravaged the cryptocurrency industry, phishing scams were the most popular option used by scammers.
Typically, phishing scams are sent via email through a link that will redirect you to a fake website that looks just like Binance.
As soon as you fill in your login details, the hackers will have everything they need to take control of your account.
Make sure you log in through the official Binance website on an up-to-date browser.
4. The Account Blocking Scam.
Binance users have also reported experiences with scammers who claim to be law-enforcement agents or even Binance staff.
These scammers send a text message with a threat, claiming your account will be permanently banned if you don’t follow their instructions.
Remember, Binance will never ask you to click a link or input a code to unblock your account.
So, ignore, block and report any message of that nature, even if there’s a Binance staff ID attached to the message.
5. The QR Code Scam.
This is another version of the account-blocking scam. This scam involves a QR code through WhatsApp along with a message stating your account is under investigation or has been blocked due to suspicious activity. You’ll receive a WhatsApp message prompting you to verify your account.
The scammer will also send a QR code with instructions on how to scan and send the code to reboot your account. As soon as you do this, the scammer gains access to your account and clears your funds.
The best way to protect yourself from this scam is by avoiding any interaction with an alleged Binance staff member.
If you’re worried about your account status, you can always login to Binance directly from an up-to-date browser.
6. Know Who You Are Communicating With.
An equally common scam scheme is when someone impersonates Binance Customer Service and asks you to release cryptocurrency without payment during a P2P transaction.
The most important P2P rule you should remember —never transfer cryptocurrency to buyers until you’ve confirmed full payment in your bank account.