Crypto exchange Binance has launched its joint anti-scam campaign in collaboration with law enforcement agencies around the world to combat an alarming upward trend in cryptocurrency-related scams.
In this regard, Binance stated:
“So far, the project has achieved impressive results.”
Below are the details.
Binance against crypto fraud
As anticipated, cryptocurrency exchange Binance announced Friday that it recently launched a campaign to combat cryptocurrency-related scams in cooperation with law enforcement.
Noticing an alarming upward trend in both traditional and cryptocurrency-related scams, Binance said it has engaged in discussions with law enforcement agencies around the world on how to combat and prevent such crimes.
The cryptocurrency exchange, specifically, said:
“We recently launched the Joint Anti-Scam Campaign in partnership with law enforcement agencies around the world.”
The campaign began in Hong Kong, where Binance partnered with local police forces to create a specific crime alert and prevention message that included helpful tips, examples of the most common scams, and relevant resources and contacts.
The global cryptocurrency company said that, so far, the project has achieved outstanding results. It also observed that in the first four weeks since its launch, about 20.4% of users reconsidered withdrawing or checked whether the transaction carried the risk of scam.
Statements regarding Binance’s anti-crypto-fraud campaign
The Cyber Security and Technology Crime Bureau (CSTCB) for the Hong Kong police force was quoted by Binance as saying:
“Hong Kong Police is placing emphasis on effective crime prevention. As a result, we have joined forces with various stakeholders, including Binance, to provide key crime prevention advice to interested users.”
Not only that, Binance also explained that it is now looking to cooperate with law enforcement agencies in other regions as it promotes its other anti-scam initiatives, concluding:
“The joint anti-fraud campaign complements our existing anti-crime and crime prevention initiatives around the world.”
The cryptocurrency exchange’s existing anti-scam initiatives include general law enforcement operational assistance and the Global Law Enforcement Training Program, announced last year.
In any case, blockchain data analytics firm Chainalysis also released a report last week stating that cryptocurrency scam revenues are down 46% in 2022.
However, some types of cryptographic scams are on the rise, including the alarming pig slaughtering scam that the US Federal Bureau of Investigation (FBI) has repeatedly reported.
Meanwhile, Binance and its affiliated platform, Binance US, a separate entity, are currently being investigated by US senators for potentially illegal business practices.
Chainalysis and the crypto fraud report
Blockchain data analytics firm Chainalysis released its 2023 crypto crime report last week with a section on crypto scams. The report states that cryptocurrency scam revenue decreased by 46% in 2022.
Specifically, there is the following explanation:
“Crypto scam revenue dropped significantly in 2022, from $10.9 billion a year earlier to just $5.9 billion.”
Chainalysis tracks several types of cryptographic scams, including giveaway scams, impersonation scams, investment scams, non-fungible token (NFT) scams, and romance scams.
While noting that its numbers are a lower estimate, the blockchain analytics firm explained that estimates of the actual amount lost by scammers will increase as we identify more addresses associated with scams.
The company specifically mentioned the “pig slaughtering” scams that have become alarming. The Federal Bureau of Investigation (FBI) has warned about this type of cryptographic scam many times. Last November, US authorities seized seven domains used by pig slaughtering scammers.
Regarding the decline in revenue from cryptographic scams, Chainalysis said:
“We attribute most of this decline to market conditions, as scam performance tends to deteriorate when cryptocurrency prices are falling.”
Specifically, Chainalysis described that cryptocurrency scam revenues started the year on an upward trend, but plummeted in early May, at the same time that the bearish market began after the Terra Luna collapse, and then declined steadily throughout the rest of the year.