Binance Introduces New Security Measure Against Crypto SMS Fraud Attempts

Binance is set to roll out a new security mechanism designed to assist users in detecting SMS phishing scams.

In response to rising concerns about SMS phishing fraud, Binance has announced plans to launch a new security feature that will enable users to recognize SMS phishing scams. This decision comes after a recent phishing attack targeted a Web3 enthusiast named Joe Zhou. The company has not disclosed any information on how the feature will operate.

Zhou was a victim of an SMS phishing scam that seemed to originate from Binance. The message falsely stated that his account was being accessed from North Korea. The scammer, pretending to be a Binance representative, persuaded him to create a SafePal wallet. Zhou followed the instructions and transferred funds to the wallet. However, he grew suspicious and later confirmed with a Binance contact that he was indeed being scammed. As he tried to recover his assets, the scammer withdrew additional funds before his transaction failed due to gas fees.

Zhou's experience is not an isolated case, as phishing attacks targeting crypto users have been frequently reported. Just over a week ago, on Feb. 18, Cyprus Police's cybercrime division warned about a rise in SMS fraud schemes. Scammers impersonating Binance officials sent messages that appeared genuine, deceiving users into revealing their login credentials. Once obtained, the scammers accessed accounts and stole funds.

Other prominent crypto platforms have also been targeted. Between Dec. 2024 and Jan. 2025, Coinbase users suffered significant losses due to social engineering scams. Blockchain investigator ZachXBT reported that at least $65 million was stolen during this period. Attackers used phishing emails, fake customer service calls, and counterfeit websites to deceive users into transferring funds under the guise of security verification. The stolen assets were then laundered through bridges and mixing services like Tornado Cash.

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"Myself and @tanuki42_ spent time reviewing Coinbase withdrawals and gathering data from my DMs for high confidence thefts on various chains. Below is a table we created which shows $65M stolen from Coinbase users in Dec 2024 – Jan 2025. Our number is likely much lower than the actual figure."

The extent of phishing-related losses has been considerable. According to a CertiK report, a total of $2.36 billion was lost across 760 on-chain security incidents in 2024, representing a 31.61% increase from the previous year. Phishing attacks accounted for $1.05 billion of these losses, nearly half of the total amount. The second quarter of 2024 was particularly detrimental, with 67 phishing attacks resulting in losses of $433.7 million.

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