Hong Kong Police Issue Warning as Binance Users Lose $450K to Text Message Scam

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Key takeaways:

  • The authorities in Hong Kong have issued a warning after 11 Binance users in Hong Kong were the target of a spate of text message phishing schemes.
  • In the past two weeks, 11 Binance clients from Hong Kong have reported losses totaling more than $446,000.

The authorities in Hong Kong have issued a warning after 11 Binance users in Hong Kong were the target of a spate of text message phishing schemes.

In a post titled “CyberDefender” on its Facebook page on October 9, the Hong Kong Police cautioned users of the fraud.

“Recently, fraudsters posing as Binance sent text messages claiming that users must click the link in the message to verify their identity details before a deadline; otherwise, their account would be deactivated.”

According to the police, users who clicked the link and purportedly “verified” their personal information allowed hackers to access their Binance accounts and take all of the assets stored in the victims’ wallets.

In the past two weeks, 11 Binance clients from Hong Kong have reported losses totaling more than $446,000 (3.5 million Hong Kong dollars), according to the post.

Users who think they may have received a possibly fraudulent communication are asked to report the messages on the police’s official website’s “fraud prevention” section.

The Hong Kong Securities and Futures Commission (SFC) offered a link to a recently released list of verified virtual asset trading platforms, which the police also made available.

Only two cryptocurrency exchanges, HashKey and OSL, now have full Hong Kong retail investing licenses.

The Cyber Security and Technology Crime Bureau of the Hong Kong Police Force launched the CyberDefender project in May, intending to raise local citizens’ awareness of the dangers of internet security.

With the recent JPEX crypto exchange crisis expanding to an estimated $180 million in losses and more than 2,300 Hong Kong-based investors registering complaints with the local authorities, Hong Kong’s cryptocurrency investors have been hit particularly hard by scams and fraudulent behavior in recent weeks.

JPEX, an unregulated cryptocurrency exchange, is accused of luring Hong Kong residents with eye-catching advertising and “suspiciously” high profits on its financing products. The exchange increased withdrawal costs from its site on September 15, blocking users’ access to their money.

As a result of the scandal, which has been called the most significant financial scam to ever occur in Hong Kong, the SFC declared that it would publish a list of both adequately licensed and “suspicious” crypto platforms to thwart potential fraud.

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