Key points to remember

  • Between January and July 2024, Binance’s comprehensive risk management and real-time monitoring systems have prevented over $2.4 billion in potential losses from scams and fraud, protecting over 1.2 million users worldwide.

  • Binance’s powerful risk management engine, which combines manual and AI-assisted checks, dynamically detects and flags suspicious transactions to ensure user safety across all verticals on the platform.

  • Although Binance employs extensive security measures, users are advised to remain vigilant and adopt effective security reflexes as the platform continually innovates to stay ahead of potential threats and make the crypto ecosystem safer.

For Binance, user safety comes first. Through our proactive approach to protecting users and their assets, we have prevented over $2.4 billion in losses from potential fraud and scams between January and July 2024, which could have affected over 1.2 million victims globally. This achievement is a result of Binance’s comprehensive risk management measures, which help effectively detect and flag suspicious transactions on the platform.

A powerful engine

Binance’s threat monitoring system is powered by a powerful risk management engine that examines user actions in real-time through a hybrid of manual and artificial intelligence (AI)-assisted checks. This technology allows the Binance team to dynamically detect suspicious transactions and quickly take necessary actions to protect users. The system works across all Binance verticals and protects users in a variety of situations: payments, crypto withdrawals, and more.

Suspicious transactions are mostly flagged at the time of crypto withdrawals, when criminals attempt to siphon off potential victims’ funds to evade Binance’s security and risk control systems. Of the $2.4 billion in avoided losses recorded so far in 2024, withdrawals related to suspected crypto scams account for over $1.1 billion, or about 45% of the total amount.

“Putting the user first has always been a core value at Binance. That’s why we place such emphasis on building and maintaining cutting-edge technology tools and processes that enable us to protect our users and their assets at all times,” said Rohit Wad, CTO of Binance.

Rohit Wad added that these efforts contribute to making the ecosystem safer for all crypto users, which is an important part of Binance’s responsibility as an industry leader. The work of improving our systems and capabilities to stay ahead of potential threats is an ongoing process, as malicious actors continue to devise new ways to penetrate crypto exchange defenses.

Towards a safer ecosystem

In addition to monitoring and detecting threats, Binance employs a range of tools and measures to protect users from crypto scams. These measures are divided into eight levels based on the severity of the risk. Ranging from personalized pop-up notifications to pause functions and awareness calls, they balance user experience and security. Binance also offers various recourse channels that range from fully automated to manual handling to help users who have been flagged as potentially at risk and are looking to resolve their issues.

While we continue to exceed expectations in security and protection of users and their assets, we always emphasize the importance of vigilant user behavior.

“We encourage our users to remain vigilant and take responsibility for their own security,” explained Rohit Wad. “While our team has implemented extensive measures to protect their funds, it is the users themselves who play the most important role in protecting their assets. They must stay informed, implement strict security practices, and be wary of potential scams.”

In addition to protecting its own platform, Binance has recovered over $73 million in misplaced or lost funds for external parties as of July 31 this year. We will continue to innovate and strengthen our security measures to provide a safe environment for all crypto users, on the Binance platform and beyond.

For more information

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