Managing Risks: Binance's Fight Against Social Engineering
Main Takeaways
Social engineering is a class of manipulative strategies used by cybercriminals whereby they exploit human psychology, often acting through phishing emails, phone calls, or direct messages, to extract money from their victims.
Digital footprints can reveal sensitive information that criminals use to target individuals with social engineering techniques, making it essential to manage and control personal information to mitigate potential risks.
Both Binance and its users have an important part to play in combating social engineering scams. Users need to educate themselves on potential threats and remain vigilant, while Binance’s contribution to the fight lies in continuously enhancing security measures and working with law enforcement to stem scams at the source.
If you receive a random direct message from someone claiming to be from Binance, it's almost certainly a scam. Never share your BUID or personal information with others, and only ever use the official support chat link through the Binance app or website.
Here’s how you can join the fight against social engineering scams, keep yourself safe, and help the Binancian community.
With social engineering scams on the rise in the crypto world, it's critical we all examine the roles we need to play. Fighting this threat is an essential part of managing risk, and Binance takes the responsibility for users’ security and privacy on our platform very seriously. From users’ end, being aware and vigilant is the best way to stay on the safe side.
If you’re not familiar with social engineering scams, consider this your crash course. You’ll also get to find out exactly how we can help.
Make Sure You Understand How Binance Representatives Will Contact You
Before we dive into the details, as a Binance user you should always know the legitimate ways in which we may contact you. Binance will only ever use official, verified channels for contacting users. These include:
Official emails from the Binance domain
In-app notifications
Announcements on the official Binance website
Verified social media accounts
The customer service portal on the Binance website.
It’s also important to remember that Binance will never ask for personal or other sensitive information through direct messages, phone calls, or unofficial communication channels.
To further enhance your security, you can use Binance Verify. With this tool, you can check whether the person reaching out to you officially represents Binance. Simply input the website link, email address, phone number, Twitter account, or Telegram ID of the person that has contacted you.
If someone claims to be a Binance employee or Binance advisor and you have any doubts about their authenticity, contact our customer support team. We’ll then be able to help you verify the legitimacy of any messages you’ve received.
What is Social Engineering and How Does it Work?
Social engineering is a set of manipulative strategies used by cybercriminals to deceive individuals into divulging sensitive information, granting unauthorized access to personal accounts, or performing other actions that benefit the attacker.
Social engineering exploits human psychology and people’s general trust. Attackers will impersonate colleagues, friends, or figures of authority and use various techniques to get their victims to comply. These include phishing emails, phone calls, or direct messages that compromise the security of the target or their organization.
Let’s look at some examples. Imagine you get a call from your bank asking you to confirm your personal information and credit card details. However, once you do this, you notice a number of charges on your card. It was never your bank calling at all but, in fact, a scammer using social engineering methods.
You could even be added to a group chat on a popular messaging app, where administrators claim to represent a crypto exchange. There may also be a supposed investment opportunity advertised in the chat promising high returns but with a looming deadline. Other members in the group chat may then also agree to participate immediately, creating a sense of FOMO that may nudge you to send funds to an unknown address.
The truth is, crypto exchanges like Binance do not contact users this way. Binance only communicates through its official, verified channels, and would never solicit through SMS or adding users to group chats.
Your Digital Footprint and Its Implications for Your Personal Data Security
Any internet user’s digital footprint can be a goldmine for social engineering scammers. A digital footprint refers to the online traces of your activity or identifiable data that remain on the internet, such as social media posts, browsing history, or search queries.
These digital artifacts can compromise your personal data security because they reveal sensitive information that can be used to exploit or target you. Your social media post might be used to find out you’re planning a trip to Thailand, for example. This could then be used by a bad actor to tailor their social engineering scam to your circumstances in a way that increases the likelihood of them gaining your trust.
Digital footprints also accumulate over time, creating an extensive and often permanent record of your online activity. Therefore, it’s essential to manage and control your digital footprint to mitigate potential privacy and security risks.
Emerging Social Engineering Threats and Tactics
In recent years, we’ve seen an alarming rise in social engineering attacks. The methods used are constantly evolving along with technology, making it challenging for users to identify and avoid the latest schemes. New methods of digital communication provide attackers with more avenues for deception and exploitation.
Cybercriminals increasingly utilize social messaging platforms to find victims and execute social engineering attempts. An attacker can disguise themselves as a friend, colleague, or official by copying information from their accounts and other forms of online presence.
As these social engineering threats become more widespread, users must prioritize their digital security to safeguard their personal information. To help you stay vigilant, let’s take a look at some of the most common tactics currently used.
Phishing: Scammers contact targets via email, SMS, or messengers posing as representatives of reputable entities to trick recipients into clicking malicious links, divulging sensitive information, or downloading malware.
Pretexting: Attackers follow a communicative script to gain victims' trust and obtain personal data, such as posing as a bank or tech platform support representative needing verification details.
Baiting: Cybercriminals lure victims with the promise of free goods or services, enticing them to click on links or download files that compromise their security.
Quid pro quo: Scammers offer a seemingly valuable service or item in exchange for sensitive information or access to the victim's systems.
Spear-phishing: Customized phishing attacks targeting specific individuals or organizations using detailed and convincing personalized scripts to maximize the chances of success.
Watering hole: Attackers compromise a website frequently used by the target group, injecting malicious code that infects visitors' devices.
How Binance Works to Prevent Social Engineering Scams
Protecting our users is a number one priority for Binance. As part of this work, we’re dedicated to preventing social engineering scams by putting up robust security measures and constantly raising user awareness of widespread schemes.
Binance employs a wide range of security mechanisms, including multi-factor authentication, advanced verification processes, and continuous monitoring of suspicious activity on the platform.
Binance also regularly collaborates with cybersecurity experts and law enforcement agencies to stay up-to-date with emerging threats. Working together, industry players can develop proactive solutions to combat social engineering attacks.
Nils Andersen-Röed, Deputy Head of Financial Crime Compliance at Binance, said: “We’ve always held on to the belief that effective security is collaborative, and the blockchain space is no exception. At Binance, we’ve found that our collaborative work with both public sector and industry players globally have complemented our own efforts to build a safer and more secure ecosystem for our users. Equally important, however, is to ensure that users themselves are involved in the process of keeping themselves and their assets protected.”
That is why Binance places strong emphasis on empowering users to take their safety and security seriously. In fact, the most effective solution to social engineering attacks is education and prevention.
With regular communications and guides, we help inform Binance users about the latest scam trends and best avoidance practices. We also show the community how to identify and report suspicious activity to us. One such example is our Know Your Scam blog series, where we break down common crypto scams for the benefit of our users.
We also only ever recommend contacting us through verified social media accounts and official channels for accurate information and updates. This helps reduce the chance of falling victim to fraudsters impersonating Binance representatives.
How You Can Protect Your Personal Data Online
In addition to Binance’s user safety measures, there’s a lot you can do yourself to stay safe.
Be cautious of unexpected or unsolicited communications
Social engineering attacks often begin with unexpected communications, such as emails, texts, social media messages, or being added to group chats. Approach any unsolicited communication with skepticism, especially if it requests personal information or demands immediate action.
Verify the sender's authenticity
To recognize impersonation, check the sender's email address or social media profile for inconsistencies or unusual elements. Official communications should come from verified accounts or known, legitimate email domains.
Look for poor grammar and spelling
Scams often contain grammar mistakes, spelling errors, or irregular formatting. Pay attention to these details when evaluating a message's credibility.
Hover over links before clicking
By hovering over a link without clicking, you can usually see its destination URL. If the URL appears suspicious or unrelated to the supposed sender, it might be a scam.
Beware of high-pressure tactics
Social engineering attacks often leverage a sense of urgency, fear, or emotional triggers to manipulate victims. Be cautious if a message demands immediate action, threatens consequences, or offers something that seems too good to be true.
Double-check requests for sensitive information
Legitimate entities rarely request personal or financial data via email or social media. If you receive such a request, contact the organization directly through their official channels to verify.
Watch out for spoofed websites
Scammers often create fake versions of legitimate websites to deceive users. Before entering any sensitive information, ensure that the URL is correct and the site has a secure connection (https://).
How Education & Cyber Hygiene Can Help You Stay Safe
Prevention plays a crucial role in combating social engineering scams as these attacks exploit human vulnerabilities rather than technological flaws. Once a person has fallen victim, it can be challenging to reverse the damage, which might include loss of sensitive information, financial loss, or identity theft.
Prevention through education and vigilance is essential. By being well-informed about the latest scam techniques and practicing safe online habits, you can protect yourself from cybercriminals. Consistently staying alert and questioning the legitimacy of unfamiliar communications also helps build strong defenses against social engineering attacks.
As we mentioned earlier, proper storage and management of your online data is also crucial. You should maintain good cyber hygiene to make sure not everyone can easily access your important information.
Also, remember that what may not seem important to you could be very useful for a scammer. Social media is a powerful tool for peeking into your life and gleaning information that can be used to gain your trust.
Always Stay Vigilant – Binance Can Help With the Rest
Both Binance and its users have key roles to play in combating social engineering scammers. Users need to remain vigilant and aware of the latest scams, taking proactive steps to protect their accounts and personal information.
Simultaneously, Binance is committed to working behind the scenes to identify and counteract these bad actors. We also will continuously enhance the platform's security measures to provide a safe ecosystem for all users. By working together, Binance and our user community build a robust defense system against even the most sophisticated social engineering threats.