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Binance Takes a Stand Against Crypto Fraud with Launch of New Campaign

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Binance, a prominent cryptocurrency exchange, has announced the launch of a collaborative anti-scam campaign with law enforcement agencies worldwide to counteract the alarming increase in cryptocurrency-related scams. Binance has issued a statement detailing its commitment to promoting a safe and secure trading environment for its users and the wider crypto community.

The achievements of the project have been impressive so far.

The following information outlines the specifics of the campaign:-

Summary:-

  1. Binance against cryptocurrency fraud
  2. What Statements regarding Binance’s anti-crypto-fraud campaign
  3. Chainalysis and the cryptocurrency fraud report

1. Binance against cryptocurrency fraud:-

Cryptocurrency exchange Binance has announced the launch of a campaign to combat the growing trend of cryptocurrency-related scams. The exchange has noted an alarming increase in both traditional and crypto-related scams and has thus engaged in discussions with law enforcement agencies globally to prevent such crimes. Binance’s proactive stance against fraudulent activities is in line with its commitment to ensuring the safety and security of its users.

“We have recently initiated the Joint Anti-Scam Campaign in collaboration with law enforcement agencies across the globe,” Binance announced.

Binance initiated the campaign in Hong Kong and collaborated with the local police forces to create a targeted crime alert and prevention message, which offered useful tips, highlighted common scams, and shared relevant resources and contacts. As per Binance, the project has yielded remarkable results, with approximately 20.4% of users either reconsidering their withdrawal or verifying the possibility of scam during the initial four weeks since its commencement.

2. What Statements regarding Binance’s anti-crypto-fraud campaign:-

Binance quoted the Cyber Security and Technology Crime Bureau (CSTCB) for the Hong Kong police force as stating:-

“The Cyber Security and Technology Crime Bureau (CSTCB) of the Hong Kong Police Force recognizes the importance of effective crime prevention measures. In collaboration with various stakeholders, including Binance, we aim to provide crucial crime prevention advice to interested users.”

Furthermore, Binance expressed its interest in collaborating with law enforcement agencies in other regions as it seeks to advance its other anti-scam initiatives. The company emphasized the importance of educating the public on the risks associated with cryptocurrency and the steps that can be taken to prevent fraud.

Binance launches global anti-scam campaign with law enforcement agencies, starting in Hong Kong. Impressive results achieved and further expansion planned.

Binance’s efforts against crypto scams are not limited to its joint campaign with law enforcement agencies. The exchange also has existing anti-scam initiatives such as the Global Law Enforcement Training Program. A recent report by Chainalysis reveals a 46% decline in cryptocurrency scam revenues in 2022, although certain types of crypto scams, such as the pig slaughtering scam, are still prevalent. Additionally, Binance and Binance US are facing an investigation by US senators over potential illegal business practices.

3. Chainalysis and the cryptocurrency fraud report:-

Last week, Chainalysis released its 2023 crypto crime report, which includes a section on crypto scams. According to the report, cryptocurrency scam revenue decreased by 46% in 2022.

Explanation of Chainalysis’ findings on cryptocurrency scams:-

“Cryptocurrency scam revenue dropped significantly in 2022, from $10.9 billion a year earlier to just $5.9 billion.”

Chainalysis monitors various types of cryptographic scams such as investment scams, impersonation scams, NFT scams, giveaway scams, and romance scams. The firm’s estimates of the amount lost by victims are expected to rise as more scam-associated addresses are identified. Chainalysis also highlights the “pig slaughtering” scam, which has been the subject of repeated warnings from the FBI. US authorities recently seized seven domains used by the scammers.

Decline in Revenue from Cryptographic Scams, According to Chainalysis:-

“The report also highlighted that while the total value of scams has decreased, the average value of individual scams has actually increased, indicating that scammers are targeting higher-value victims.”

According to Chainalysis, the revenue from cryptocurrency scams saw an initial upward trend at the beginning of 2022, but took a nosedive in early May, which coincided with the bearish market following the Terra Luna collapse, and continued to decline steadily throughout the year. The blockchain analytics firm attributes this decline to market conditions, as scam performance tends to deteriorate when cryptocurrency prices are falling.

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