As many traders are aware, there is a growing number of cryptocurrency scams and frauds which claim to offer high returns in exchange for what seems to be very little. One such area which is seeing a heightened increase in the number and severity of scams and fraud is Binance. Popular with US traders, the Binance platform is one which many traders and investors use, however, in recent years there have been growing reports of scams and Binance fraud happening within the network, leaving traders and investors out of pocket and with little support available.
Our team of international wealth recovery attorneys have dealt with numbers of Binance fraud cases over the years, helping clients to recover millions of dollars. We’re well versed in recovering funds lost through Binance fraud, but it’s important to learn and understand the signs of Binance fraud so that, if you suspect it has happened, our team can act quickly – giving you a better chance of recovering your lost funds.
Binance is one of the leading cryptocurrency exchanges, offering crypto-to-crypto trading for over 360 different cryptocurrencies. Founded in 2017, it strongly focuses on altcoin trading (which is a term used to refer to all cryptocurrencies other than Bitcoin) and supports hundreds of the world’s most commonly traded cryptocurrencies.
Binance is said to offer some of the highest standards of security and safety for traders and investors through its multi-tiered and multi-clustered approach. However, in 2019, the worldwide Binance exchange platform was banned in the US as a result of regulatory concerns. Following this, Binance then opened Binance.US – an exchange which was said to meet U.S regulations, however, residents of New York, Texas, Vermont and Hawaii are still not allowed to trade using Binance.
Binance utilizes many different tools and measures in order to try and keep traders and investors protected when using the exchange from crypto scams and account takeover attacks – two of the more popular scams on crypto exchanges. Some of these measures include real-time risk monitoring and 2-factor authentication, timed alerts and the use of anti-phishing codes.
However, despite these protections, Binance fraud can and does still occur. One of the more common scams is the Binance imposter scam.
Binance imposter scams involve a criminal posing as a Binance employee or trusted representative who then offers fake services, solely designed to steal investor and trader money. These Binance fraud scammers will reach out and approach traders and investors through unofficial means, such as email or social media accounts which are created to look similar, if not identical, to official accounts. They will attempt to build a relationship with the victim and create a false sense of security, but in reality, they are looking to gain personal data, such as phone numbers, email addresses, identity and wallet credentials or even records of past trades and transactions.
The scammer impersonating a Binance employee will ask the victim to send money to an account, usually with the pretense of keeping their account open, for admin fees, or even asking for their Binance login information. Once this information is provided, the scammer will empty the entire crypto balance to their own wallet, before the victim can regain access, and this is something that our team have seen all too frequently.
Much like other forms of cryptocurrency fraud and scams, there are some ways in which you can protect yourself from falling victim to Binance fraud.
It’s also important to protect your private information, no matter the exchange or platform you are using, and keep your private information secure.
In the unfortunate event that you suspect you have been the victim of Binance fraud, then we recommend that you remain alert as sometime scammers will look to make further attempts on your account. If you believe your Binance account has been compromised, you should file a report with Binance as soon as possible.
However, you can also contact our team of dedicated international attorneys and arrange a free consultation. With cryptocurrency scams, including Binance fraud, we may be able to trace and recover your lost funds. Speak to us today for more information.