Hong Kong’s police force has issued a warning following a surge in phishing scams targeting local users of the cryptocurrency exchange, Binance. These scams involve fraudsters sending text messages to users posing as Binance support, claiming that users need to click a link to verify their identity details to prevent their accounts from being deactivated.
However, once users click on these links and provide their supposed verification details, hackers gain full access to their Binance accounts. This has led to a series of security breaches where the fraudsters have stolen the assets held in the victims’ wallets. Over the past two weeks, 11 Hong Kong-based Binance customers have reported combined losses exceeding $446,000 (3.5 million Hong Kong dollars) due to these scams.
To address this issue, Hong Kong’s police have urged users to report any suspicious messages they receive on the “fraud prevention” section of their official website. They have also provided a link to a list of verified virtual asset trading platforms published by the Hong Kong Securities and Futures Commission (SFC). Currently, only two cryptocurrency exchanges, HashKey and OSL, are fully licensed for retail investment in Hong Kong.
CyberDefender, a project launched by the Cyber Security and Technology Crime Bureau of the Hong Kong Police Force in May, is actively working to raise awareness about online security risks among local citizens.
Beware of scammers. Stay #SAFU! pic.twitter.com/XZMDMKkBJf
— CZ 🔶 Binance (@cz_binance) October 9, 2023
Recent weeks have seen Hong Kong cryptocurrency investors falling victim to various scams and fraudulent activities, including the JPEX cryptocurrency exchange scandal, which led to an estimated $180 million in losses and over 2,300 Hong Kong-based investors filing complaints with local police. JPEX, an unlicensed cryptocurrency exchange, attracted Hong Kong residents with enticing advertising and exceptionally high returns on lending products, only to increase withdrawal fees on September 15, rendering users’ funds inaccessible. Following this massive fraud scandal, the SFC announced that it would publish a list of both fully licensed and “suspicious” cryptocurrency platforms to help combat potential fraud.
ALSO READ
- Hong Kong cracks down on crypto fraud with list of 'suspicious' platforms
- Hong Kong to crack down on crypto fraud with tighter regulation
- Hong Kong arrests crypto influencer for JPEX association