On Tuesday, the crypto exchange Binance announced that it had prevented over $2 billion in potential losses from fraud and scams since January 2024. The exchange highlighted its risk management measures and “proactive approach” as the key to seakeeping the funds of over 1 million users from fraudulent activity.
Binance Prevents Over $2 Billion In Potential Losses
Binance, one of the largest crypto exchanges by trading volume, shared it has stopped the potential loss of $2.4 billion from users’ funds this year. From January to July, the exchange prevented funds suspected of being related to crypto scams and frauds from leaving the exchange, protecting over 1.2 million users globally.
The crypto trading platform explained it took an active approach to detect and stop suspected malicious actors and ensure the security of its customers and their assets. To achieve this, the exchange uses a “powerful risk engine” that uses a mix of Artificial Intelligence (AI) and manual reviews to manage real-time monitoring of all transactions.
This system reportedly allows the detection of suspicious transactions across all of Binance’s verticals to take the necessary actions rapidly:
This allows the Binance team to dynamically detect suspicious transactions and take action to protect users quickly. The system operates across all Binance’s verticals, safeguarding users in various domains that include P2P trading, payments, crypto network withdrawals, and more.
The exchange also detailed the flagging process, noting that the irregular transactions are flagged at the crypto withdrawal stage. At this stage, “criminals attempt to funnel potential victims’ funds away from Binance’s security and risk control systems.”
Per the report, over $1.1 billion in withdrawals linked to suspected crypto scams were prevented this year. This number makes up approximately 45% of the total prevented losses.
Hands-On Security Approach To Aid Crypto Investors
Rohit Wad, Chief Technology Officer at 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 around the clock.”
Besides the risk engine, the trading platform uses various tools and measures to protect users’ funds from crypto scams. The report detailed that the exchange arranged these measures across eight levels based on the severity of the risk to ensure a balance between security and users’ experience.
As a result, the crypto exchange’s security team recently announced it had secured millions of users’ funds stolen from external parties. By July 31, 2024, Binance had recovered or frozen over $73 million in stolen funds, surpassing the $55 million secured throughout 2023.
The exchange noted that recovered funds increased by 40% in the first 7 months of this year thanks to the different security tools and measures. Additionally, it has successfully aided users in recovering misplaced and lost digital assets, with approximately 80% of recoveries related to external hacks, exploits, and theft.
Ultimately, Binance’s CTO urged investors to remain vigilant and have a hands-on approach to their assets’ security to combat scams further. He suggested users stay informed and use strong security practices as they “play the largest role in safeguarding their assets.”
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments