Main Takeaways
This report highlights the Binance 2024 Anti-Scam Refund Initiative, a joint effort by several teams across Binance designed to enhance user safety.
The Binance Anti-Scam Refund initiative works around the clock to prevent scams, protect users, and refund victims.
Discover the strategies, methodologies, and technology behind Binance Anti-Scam Refund initiative, and learn about the impressive results that underscore the tireless dedication of Binance in protecting our users.
Introduction
In 2024, the cryptocurrency landscape continued to grow, offering vast opportunities and transformative financial freedom. Yet, as innovation surged, so did the sophistication of financial scams throughout both the crypto and traditional financial landscape. At Binance, trust isn’t just earned—it’s safeguarded. Our commitment to user security remains at the forefront of everything we do, ensuring that the crypto journey is as safe as it is empowering.
This report highlights Binance’s achievements in tackling scams, recovering funds, and raising awareness to protect our community. It demonstrates how Binance sets the gold standard in the crypto industry for risk management, user education, and proactive security measures.
The Growing Threat of the Scam Industry
The global scam industry, spanning both traditional and digital finance, has evolved into a highly organized network, with criminals using elaborate schemes to exploit unsuspecting victims. Fake investment platforms with professional-grade websites lure individuals with promises of guaranteed returns. Phishing attacks trick users into revealing sensitive information. Social engineering manipulates emotions to bypass logical defenses.
A chilling saying in the scam circles goes: "Everyone can be scammed; it's just a matter of finding the right method." Scams can happen to anyone, victims range from 90-year-old retirees to 18-year-old students, and include competent professionals like police officers, doctors, and lawyers. The evolving scam industry creates an urgent need for leading cryptocurrency platforms like Binance to adapt, respond, and lead the fight against these threats.
Binance Anti-Scam Refund Initiative
The Anti-Scam Refund initiative operates around the clock to recover funds for scam victims. This initiative combines cutting-edge risk management technology with empathetic customer service support to deliver effective results.
The Four Pillars of the Anti-Scam Refund Initiative
The Four Pillars of Binance Anti-Scam Refund Initiative
1. Proactive Protection
Binance believes prevention is the strongest form of protection. Our proactive measures focus on staying one step ahead of scammers.
Global Collaboration: Partnering with international authorities to anticipate and counter emerging threats.
Intelligence Gathering: Infiltrating scam networks to obtain critical insights.
Targeted Warnings: Notifying users in high-risk areas with tailored alerts. Over 15,000 tailored alerts and over 2000 risk assessment forms were sent to users daily this year.
Personalized Interventions: Providing interventions for vulnerable users, such as the elderly and those previously affected by scams.
Blacklist Maintenance: Malicious addresses are promptly blacklisted, helping to protect users in a timely manner and prevent further losses. Overall, more than 47 thousand unique addresses were flagged in 2024 alone.
2. 24-Hour Safety Net
Despite Binance’s frequent warnings, some users may still proceed with suspicious transactions. To protect them, we have implemented a robust safety mechanism:
Temporary Fund Freeze: Funds transferred to flagged Binance accounts are automatically frozen for 24 hours.
Active Monitoring: During this freeze, Binance investigates the recipient's activity and assesses potential risks.
User Reporting Window: Users have 24 hours to report if they suspect they’ve been scammed.
Swift Action on Reports: If a report is submitted, Binance immediately reviews the case, contacts the recipient, and conducts a detailed investigation.
Refund Process: If the transaction is confirmed to be fraudulent, Binance will review the case and determine the appropriate refund action. Please note that refunds are never guaranteed.
Round-the-clock support: 24/7 support is provided via chat to users identified as high-risk for scams. In 2024 alone, Binance processed 20,000 chats with vulnerable users to alert them of the risks of their transactions and dissuade them from withdrawing funds to scammers.
This 24-hour buffer has saved many users from irreversible losses, giving them a second chance to protect their hard-earned money.
Binance’s 8 Levels of Anti-Scam Prevention.
3. Rapid Response Recovery
Prevention is not always successful. When all fails and scams happen, every second counts. Binance Risk rapid response system is designed to act swiftly and effectively:
Seamless Reporting: A user-friendly feature on transaction pages enables immediate reporting.
AI-Powered Analysis: Reports are evaluated instantly by our advanced scam verdict model.
Quick Action: Suspected scammer accounts are frozen within seconds to prevent further losses.
Thorough Investigations: Comprehensive manual reviews follow after, ensuring accuracy and fairness in every case.
Proactive Monitoring: We proactively monitor fund flows to identify suspicious activity. However, the responsibility for tracing and recovering funds primarily lies with relevant law enforcement authorities..
Binance strongly encourages victims to provide detailed evidence, as this greatly improves the likelihood of recovering funds. We support and facilitate refunds for verified scam victims around the clock.
4. Silent Sufferer Support
Binance recognizes that many scam victims endure their pain in silence, burdened by feelings of shame and self-blame. These victims are often too paralyzed by what happened, thinking that there is no chance for them to recover their funds. We have designed a support system to identify and reach out to such victims, working together with CS representatives to check in with silent sufferers via chat to elicit more reports and successful fund recovery.
Proactive Outreach: Binance contacts users who have transferred funds to frozen scammer accounts.
Guided Recovery: Binance assists victims through the reporting and fund recovery process step by step.
Equal Support: Every victim receives fair and compassionate treatment, whether or not they’ve come forward.
By offering a helping hand to those who feel unable to seek help, Binance strives to transform silent suffering into shared healing and recovery.
Monitoring the Flow of Funds to Maximize Recovery
Scammers often attempt to obfuscate their tracks by rapidly moving stolen funds across multiple accounts and platforms. Binance’s advanced tracking systems monitor both upstream and downstream fund flows. By casting a wider net, Binance enables the freezing of associated accounts and significantly increases the chance of making users’ funds whole.
Flow of scammed funds and refund process at Binance.
AI and Machine Learning: The Backbone of Risk Management
Binance’s use of machine learning and artificial intelligence represents a game-changer in combating scams and fraudulent activities. These technologies form the backbone of Binance’s proactive risk management strategies.
How Machine Learning Models Work at Binance
Data Aggregation and Analysis. Binance’s systems analyze vast amounts of real-time data to identify anomalies that may indicate fraud.
Training and Customization. Over 50 machine learning models were developed in 2024, tailored specifically to identify scam activity on Binance P2P platform. These models are continuously updated with 14 major upgrades implemented this year to adapt to evolving tactics used by scammers.
Behavioral Profiling. AI-powered behavioral profiling helps distinguish legitimate user activities from potential scams.
Predictive Analysis. Predictive models anticipate potential scam attempts before the scam transaction is completed.
Real-Time Monitoring. Machine learning algorithms operate in real time, allowing our teams to intervene within milliseconds.
Impressive Results by the Numbers
The numbers speak for themselves. We have invested enormous effort, tools, technology, and resources in combating scams and recovering funds to victims. Here are some of the highlights of 2024 that capture our user-focused approach and tireless dedication to user security.
Funds Recovered: $9.1 million
Monthly Successful Recoveries: 80
Proactive Calls to Potential Victims: 30,000 calls
Overall Prevented Losses: over $129 million
Malicious Addresses Blacklisted: 47,000
Number of daily alerts sent to users: Over 15,000
Know Your Security Tools
Awareness is the first line of defense. Binance provides users with comprehensive tools and resources to protect themselves from scams.
Stay Up to Date
Keep up to date with Binance latest guides, tools and resources to protect users against scams. Make the full use of our in-built proprietary tools such as Binance Verify and EML Verification Service, personalised anti-phishing code in Binance emails, and more.
How to Report Scams on Binance
Binance has streamlined its reporting process to ensure users can quickly alert the platform about suspicious activity. Users can visit the Binance Support Page and follow the detailed steps provided to file a report.
Call to Action: Join the Fight Against Scams
To Our Users
Report as soon as possible and act on risk alert warnings.
Reporting scams promptly and thoroughly increases the likelihood of successful fund recovery and helps Binance act against malicious actors swiftly.
Please pay close attention to our risk alerts. Don't dismiss them as mere "friendly reminders" and certainly don't ignore them. When we alert you, it means there's a potential risk of scam in your transaction.
Here are some examples of our risk alerts:
To the Wider Community
Share your stories.
Spread awareness about these scams. Education is our strongest weapon against fraud. The safety of our community relies on the collective efforts of everyone involved.
Binance Pledges to Protect
At Binance, every recovery is a victory—not just for the individual but for the entire community. Each case represents a person, a family, a dream that was nearly shattered.
While Binance actively strives to help victims recover their stolen assets, please do not rely solely on this process, as many factors can affect its success. Prevention is the most effective measure—avoiding scam traps in the first place can save you from many subsequent pain.
Whether you're a tech-savvy investor or someone just starting the crypto journey, we're here to protect you to the best of our ability. Remember, you are never alone in this journey. Binance stands with you, ready to prevent, protect, and recover. Together, we can build a safer cryptocurrency ecosystem for all.
