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Changpeng Zhao warns of ‘major SMS scams’ targeting Binance users

Exchange Binance has warned investors of a “major SMS scam”. The scammers sent SMS messages to crypto users announcing a withdrawal request from an unknown IP address and giving a link to cancel the transaction.

SMS Scam targeting cryptocurrency investors

Binance CEO Changpeng Zhao (CZ) has tweets on Friday:

“There was a big SMS scam with a link to cancel withdrawals. It navigates to the phishing site to collect your credentials as shown in the screenshot below.”

Source: Changpeng Zhao

According to the Binance boss, the scammers sent SMS messages to investors saying that an address with an unknown IP requested a withdrawal. After that, the message suggests the investor to click on the link to cancel the order. However, the link leads to a phishing site that attempts to steal investor credentials.

The CEO also recommends that users should go directly to the Binance website via a saved bookmark or type the URL into a browser. He emphasized:

“Never click on links from SMS.”

Binance is not the only crypto exchange targeted by scammers using SMS phishing tactics. Last August, Nasdaq-listed Coinbase similarly warned of a fake scam targeting its users.

Scammers have also attempted to send other SMS messages to trick investors into clicking their scam links. According to some examples posted by Coinbase, the message reads “New signups. You are not? disable at [URL]”. Others notify investors that they have received BTC and ask them to review transactions or simply view them.

The SMS scam is one of many types of scams targeting cryptocurrency investors. In January, the US Federal Trade Commission (FTC) warned of social media and crypto ATM scams.

Recently, blockchain analysis platform Chainalysis disclosure Scammers made a record $14 billion in crypto last year. The company also found that Indians visited phishing sites nearly 10 million times in the past year.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.