Hong Kong Police Warns of Phishing Scam Targeting Binance Users Causing Significant Losses
Summary:
The Hong Kong police has issued a warning regarding a phishing scam targeting Binance users. Fraudsters impersonate Binance, sending messages to users prompting them to confirm their identity details or risk account deactivation. Clicking on the link and providing these details gives the fraudsters access to victims' Binance accounts. The scam has already resulted in losses of more than $446,000 for 11 Hong Kong-based Binance users. The police urge users to report suspicious activities and advise consulting a list of verified asset trading platforms. These events follow a recent scandal by the unlicensed JPEX crypto exchange, highlighting the ongoing issues of scam activities in the crypto market in Hong Kong.
The Hong Kong police department has issued a warning after 11 individuals who are Binance customers, based in Hong Kong, fell prey to a series of phishing scams executed through text messages. The alert was published on the "CyberDefender" section of their Facebook page on Oct. 9.
The warning educates individuals about fraudsters impersonating Binance, sending deceptive text messages that urge recipients to click a link in order to confirm their identification details before a certain deadline; failing to do so would allegedly result in the deactivation of their accounts.
Upon clicking the link and purportedly confirming their personal information, attackers manage to acquire complete access to victims' Binance accounts. From here, they can loot all valuables stored in the victims' digital wallets. As reported, this phishing operation has resulted in over $446,000 (or 3.5 million Hong Kong dollars) worth of losses for the 11 Binance users in the last fortnight.
In response to such suspicious activities, the Hong Kong police department has urged anyone receiving potentially fake messages to report them on the "fraud prevention" section of its official website. For convenience, the law enforcement agency has also shared a link to a recently updated list of authenticated digital asset trading platforms, provided by the Hong Kong Securities and Futures Commission (SFC). At present, only two cryptocurrency exchanges —HashKey and OSL— have obtained the necessary licenses to offer investment services to clients in Hong Kong.
CyberDefender, initiated in May, is a venture of the Cyber Security and Technology Crime Bureau of the Hong Kong Police Force. The purpose of the project is to enhance the awareness of local citizens about the various threats in the digital realm.
Criminals exploiting the crypto market have severely impacted Hong Kong investors recently, as seen in the recent JPEX crypto exchange incident where losses are estimated at around $180 million, forcing more than 2,300 investors to lodge complaints with the local police. JPEX, an unlicensed crypto exchange, allegedly attracted residents with striking advertising and seemingly high returns on its financial products. It drastically elevated withdrawal fees on Sept. 15, essentially barring users from accessing their funds.
Post the scam, which is considered the most significant financial fraud in Hong Kong history, the SFC announced intentions to release a catalogue of both fully licensed and potentially fraudulent crypto platforms in an attempt to deter similar fraudulent activities in the future.
Published At
10/10/2023 6:03:02 AM
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