The prominent cryptocurrency exchange Binance will implement a security tool that helps customers prevent SMS phishing scams. Binance makes this security change because phishing activities keep increasing and harm crypto holders.
Binance made this decision after their client Joe Zhou became a victim of a high-profile Web3 website fraud. Zhou experienced a fake SMS from Binance announcing foreign logins from North Korea in his account.
A Binance employee impersonator instructed Zhou to create a SafePal wallet and transfer Binance funds for security assurance. After transferring funds the scam became clear to Zhou when he checked with a Binance representative about the transaction. During his recovery attempts the scammer tried another withdrawal but failed because of a lack of gas fees.
Binance enhances security to combat phishing threats
Binance’s new security measure shows that the crypto industry works against phishing scams as the company has not made its protection method public yet. Pseudoinvestor Zhou is one of many cybercriminal victims who endure phishing trap attempts from crypto-related scammers.
The cybercrime division of Cyprus Police released an alert on February 18 to inform about increased SMS fraud occurrences. Someone using Binance’s name fraudulently composed emails to trick users about giving up their user logins. After breaking into the account the attackers transferred all available money from the compromised accounts.
Additional large exchanges faced related security incidents. During the months of December 2024 and January 2025 social engineering scammers stole money from multiple Coinbase users. Blockchain investigator ZachXBT recorded a total loss of $65 million over two months.
The attackers made users send money to fraudulent platforms by sending deceptive email scams, phone calls, and unreal online portals disguised as security checks. The criminals moved stolen money through Tornado Cash and blockchain bridges to make the transactions harder to trace.
Premium blockchain security service CertiK recorded 760 security incidents in 2024 that cost the crypto sector $2.36 billion in losses per their findings. This represents a 31.61% increase over previous year data. Phishing scams collected $1.05 billion which represents half of all losses. During the second quarter of 2024 there were 67 phishing incidents, which caused $433.7 million in losses.
Crypto exchanges and security companies boost their safety measures to help users protect themselves from rising phishing threats. User education continues to act as the strongest barrier against SMS phishing scams while Binance prepares this security tool to fight future attacks.
Owners of cryptocurrency must verify direct exchange communication, use two-factor authentication, and stay away from doubtful connection resources. The industry takes further protection steps toward cyber security threats against investors as Binance launches its new security feature.
