Scammers Impersonating Binance Steal Digital Assets from Hong Kong Users
Scammers in Hong Kong have been targeting users of the popular crypto exchange Binance and stealing their digital assets. The region has seen a rise in crypto scams as it strives to become a digital finance hub. According to reports, around $447,000 worth of assets have been stolen from Binance users in Hong Kong.
Hong Kong Crypto Hub Plagued by Scams
The scammers are sending phishing emails to Binance account holders, pretending to be the exchange. The emails ask users to click on a link and verify their identity before a deadline. This tactic is commonly used by Binance for KYC updates. Failure to comply with the fake message’s instructions may result in the disabling of accounts.
Within the past two weeks, 11 individuals in Hong Kong reported that their Binance accounts were hacked and their crypto assets stolen. Phishing scams like these typically lead victims to fake websites that collect personal information, which is then used to gain access to their crypto accounts and drain funds.
To reduce the risk of hacking attacks, Hong Kong law enforcement advised storing large amounts of virtual assets in offline cold wallets rather than on exchanges.
CyberDefender Aims to Raise Online Security Awareness
Hong Kong’s Cyber Security and Technology Crime Bureau launched a project called CyberDefender in May. Its goal is to increase awareness of online security risks as the nation aims to become a regional hub for crypto and fintech.
Since June 1, only two crypto trading platforms, OSL Digital Securities Limited and Hash Blockchain Limited, have been licensed to serve retail customers in Hong Kong under new regulations.
Binance does not have a base in Hong Kong, but it operates various regional headquarters and entities worldwide. Its parent company is registered in the Cayman Islands.
Friend.tech Implements Two-Factor Authentication
The social finance platform Friend.tech has recently been targeted by scammers. They have carried out SIM swap attacks on Twitter users to gain access to their Friend.tech accounts and drain them. Although Friend.tech recently enabled two-factor authentication (2FA), victims were unable to benefit from this additional protection.
The platform announced on October 10 that users can now add a 2FA password to their accounts for enhanced security in case their cell carrier or email service is compromised.
Hot Take: Scammers Exploit Binance Users in Hong Kong
Scammers are taking advantage of Binance users in Hong Kong through phishing emails, resulting in the theft of digital assets. With the region’s ambition to become a digital finance hub, crypto scams are on the rise. Hong Kong law enforcement advises storing large amounts of virtual assets in offline cold wallets to mitigate hacking risks. Meanwhile, the CyberDefender project aims to raise awareness of online security risks. Only two licensed crypto trading platforms serve retail customers in Hong Kong under new regulations. Another scam targeted Friend.tech users through SIM swap attacks. Although 2FA has been implemented, victims still fell prey to the scammers.