Scammers in Hong Kong rob Binance users of more than $447k in cryptos

• In the last two weeks, eleven cases of phishing were reported.
• The authorities advised users to opt for licensed crypto trading platforms.

Hong Kong police alerted the public about a sophisticated phishing scam after 11 Binance customers fell victim to it and lost a sizable chunk of their cryptos. The cyber security unit of the police force took to its Facebook page “CyberDefender” to provide more details on the case.

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Fraud in the name of Binance

According to the post, malicious players impersonating employees of the world’s largest crypto exchange sent out text messages to unsuspecting Binance users. The scammers then directed the customers to click a link sent with the message to verify their identity, failing which their Binance accounts would be deactivated.

However, as soon as customers clicked on the link, hackers gained unauthorized access to their accounts, the post read. Using the modus operandi, the hackers duped 11 customers over the last two weeks. This resulted in crypto thefts totaling $447,000.

The police advised customers to be cautious when dealing with their financial investments. They also advised people to be aware of the relevant platform and cyber security threats. Additionally, the police urged people to cross-verify any suspected phishing message with the fraud prevention section of its website.

Authorities push for licensed trading platforms

The law enforcement authority advised users to opt for crypto trading platforms that have been authorized by the Hong Kong Monetary Authority (HKMA).

Note that the local government introduced a new digital asset regulatory framework earlier this year. The liberalized guidelines paved the way for crypto exchanges to serve retail investors as well. As per official information, HashKey Exchange and OSL Exchange were allowed to operate as of 10 October.

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Around the same time, Binance CEO Changpeng Zhao (CZ) advised users to be cautious of scammers. He cited an incident that showed a customer highlighting a phishing attack by people posing as Binance’s compliance team.