Cryptocurrency exchange Binance announced Tuesday that it has prevented more than $2 billion in potential losses from fraud and scams since January 2024. The exchange highlighted risk management measures and a “proactive approach” as key to keeping its more than 1 million users’ funds safe from fraudulent activity.
Binance Prevents Potential Losses of Over $2 Billion
Binance, one of the largest cryptocurrency exchanges by trading volume, subscriber It has stopped a potential $2.4 billion loss in user funds this year. From January to July, the exchange prevented funds suspected of being linked to cryptocurrency scams and fraud from leaving the exchange, protecting more than 1.2 million users worldwide.
The cryptocurrency exchange explained that it has taken an active approach to detecting and stopping suspected malicious actors and ensuring the security of its customers and their assets. To this end, the exchange employs a “powerful risk engine” that uses a combination of artificial intelligence and manual reviews to manage real-time monitoring of all transactions.
This system is said to allow suspicious transactions to be detected across all sectors of Binance for quick action:
This allows the Binance team to dynamically detect suspicious transactions and quickly take action to protect users. The system works across all of Binance’s verticals, protecting users in areas including peer-to-peer trading, payments, crypto withdrawals, and more.
The exchange also explained the reporting process, noting that irregular transactions are reported at the crypto withdrawal stage. At this stage, “criminals attempt to divert potential victims’ funds away from Binance’s security and risk control systems.”
According to the report, more than $1.1 billion in withdrawals linked to suspected crypto scams have been blocked this year, accounting for nearly 45% of the total losses blocked.
A Practical Security Approach to Help Cryptocurrency Investors
Rohit Wade, CTO of Binance, emphasized the exchange’s efforts to build and maintain “industry-leading technological tools and processes that enable us to protect our users and their assets 24/7.”
In addition to the risk engine, the trading platform uses various tools and measures to protect users’ funds from cryptocurrency fraud. The report explained that the exchange arranged these measures across eight levels based on the severity of the risks to ensure a balance between security and user experience.
As a result, the cryptocurrency exchange’s security team recently It was announced Binance has successfully secured millions of user funds stolen by third parties. As of July 31, 2024, Binance has recovered or frozen over $73 million in stolen funds, surpassing the $55 million secured in all of 2023.
The exchange noted that recoveries increased by 40% in the first seven months of this year thanks to various security tools and measures. In addition, it has successfully helped users recover lost and missing digital assets, with around 80% of recoveries being related to external hacks, exploitation and theft.
Ultimately, Binance’s CTO urged investors to remain vigilant and take a hands-on approach to the security of their assets to further combat fraud. He suggested that users stay informed and use strong security practices as they “play the biggest role in protecting their assets.”
Binance Coin (BNB) is trading at $571 in the weekly chart. Source: BNBUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com
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