Binance Experts Develop Antidote to Address Poisoning Scams

Binance’s security team has developed a strong antidote to protect investors from the increasing risk of address poisoning scams.

Address poisoning also known as address spoofing typically involves cybercriminals creating addresses that closely mimic legitimate ones. Investors and users, often without realizing it, are duped into transferring their funds to these fraudulent addresses. 

Binance Security Team Implements Multi-Layered Defense Mechanism

To combat this, the world’s largest cryptocurrency exchange’s security experts have implemented a multi-layered defense mechanism. The cornerstone of this antidote is an advanced address verification system that rigorously checks and cross-references wallet addresses before transactions are executed.

Notably, this system employs machine learning algorithms to identify and flag suspicious addresses that deviate subtly from known legitimate addresses. The poisoned addresses, as per Binance’s report, are listed in the database of HashDit, a Web 3.0 security company partnered with Binance for security. This partnership aims to safeguard the crypto industry from poisoning scams.

Meanwhile, Binance’s decision comes a few days after an unknown trader lost $68 million worth of Wrapped Bitcoin (WBTC) in a single transaction in an address-poisoning scam. So far, Binance’s new algorithm has helped detect over 13 million spoofed blockchain addresses on BNB and almost 2 million on Ethereum. 

Binance Displays Practical Evidence of Solidarity

Shortly after the cryptocurrency exchange HTX, formerly known as Huobi disclosed a security breach that led to an $8 million loss, Former Binance CEO Changpeng ‘CZ’ Zhao extended an offer of assistance from the exchange’s security team to aid in the investigation of the incident. 

The cryptocurrency exchange also helped Axie Infinity’s Ronin Network recover some funds lost to the hack on its Bridge in March 2022. Notably, the news has showcased how much solidarity exists in the digital currency ecosystem, as exchanges and other blockchain startups collaborate to fight related crimes of this nature.

Binance Debuts Anti-Scam Campaign

As reported by TheCoinRise.com in March 2023, Binance announced the launching of an initiative to avoid scams by sending targeted warnings to possible victims in collaboration with law enforcement organizations. The “Joint Anti-Scam Campaign” project initially launched in Hong Kong, is now expanding across other countries. 

As part of the trial project, users who attempted to withdraw funds were met with notifications showing details on typical scams and advice on how to dodge them. Also, the exchange looked into how users reacted to the messages for four weeks. It was discovered that roughly 20.4% of users either chose not to make the transfer or looked further to identify if it was a scam.

The alert provided data on the amount of fraud in Hong Kong over a particular period and suggested websites like Scameter, the Anti Deception Coordination Center, Cyber Defender, and Binance Verify as useful resources.