Crypto Entrepreneur Warns After Falling for Binance SMS Phishing Scam Days After Bybit Hack

Phishing Scam Targets Binance User, Highlights Ongoing Crypto Threats

A recent phishing scam targeting Binance users has raised serious concerns about the security of digital asset platforms.

Joe Zhou, a Web3 enthusiast and crypto entrepreneur, became a victim of a sophisticated scam after receiving a phishing SMS that appeared to come from Binance’s usual number, which he typically receives verification codes from.

This happened just days after Bybit experienced one of the largest crypto exchange hacks in history.

He shared on LinkedIn that he received a message claiming his Binance account was being accessed from North Korea and urged immediate action to secure his funds.

Source: Linkedin

Scammer Lures Victim into Creating Fake SafePal Wallet

Believing the message to be legitimate, Zhou immediately called the number that had sent the SMS.

The person who answered, speaking with a distinct British accent, instructed Zhou to set up a SafePal wallet.

The scammer claimed that SafePal had partnered with Binance, and even sent an article purportedly from Binance to support the claim.

Convincing as it seemed, the scammer asked Zhou to transfer all his Binance assets to the new wallet for safekeeping.

Zhou, trusting the information, began the process of transferring his funds.

However, he started to feel uneasy about the situation.

Zhou recalled,

"I followed the instructions to set up a wallet and started withdrawing my funds out of my Binance account. But I already sensed something was wrong."

This hesitation prompted him to reach out to a friend who worked at Binance for advice.

Binance Insider Warns Victim of Ongoing Scam

Luckily, Zhou’s friend, Carlos M., who works at Binance, quickly recognised the signs of the scam and alerted him.

Zhou explained,

“I checked with him and realized I had been scammed.”

After realising his mistake, Zhou attempted to reverse the transactions by transferring funds back from the SafePal wallet to his Binance account.

However, the scammer quickly noticed this move and began withdrawing the funds before Zhou could fully recover them.

The situation escalated when Zhou ran out of gas fees for the transaction.

In a final attempt to drain the wallet, the scammer sent additional ETH to cover the gas and withdrew the remaining funds.

Zhou reported that he lost only 200 USDT in the incident, but the experience served as a harsh reminder of the dangers lurking in the crypto space.

Phishing Attacks on Binance Not a New Concern

This incident is not the first time Binance users have fallen victim to phishing scams.

Binance’s Risk Sniper account published a warning in November 2024, highlighting similar attacks affecting users in Sweden, Lithuania, and other parts of Europe.

Scammers impersonated Binance and sent out SMS messages claiming to notify users of security issues, such as abnormal API activities.

Source: Binance Square

These messages urged victims to reach out to the attackers, who then guided them to transfer their assets to a supposedly secure TrustWallet.

Once users handed over their funds, the scammers quickly accessed the wallets using the provided seed phrases and withdrew the assets.

Such incidents demonstrate the ongoing threat of phishing scams targeting cryptocurrency exchanges and users alike, making it essential for crypto holders to remain vigilant and cautious.