Popular Web3 expert Joe Zhou calls the public’s attention to an SMS spoofing scam targeting unsuspecting Binance users.
Zhou issued the crucial alert in a LinkedIn post, revealing how he lost about $200 worth of cryptos through the attack.
Scam Details
Highlighting the deceptive nature of the scam, Zhou revealed that he received a fake security alert through his registered Binance number, claiming someone had logged into his account from North Korea’s capital, Pyongyang. This malicious message contained a phone number to call for assistance.
Zhou panicked after receiving the message based on the timing of the incident, which coincided with Bybit’s $1.46 billion attack. Recall that popular blockchain sleuth ZachXBT identified North Korea’s hackers, Lazarus Group, as the perpetrators of the Bybit hack.
Notably, Zhou immediately called the number in the message. The scammer, who posed as a Binance customer care representative with a British accent, instructed him to set up a SafePal Wallet.
Furthermore, the scammer pressured Zhou to transfer his crypto assets on Binance to the newly created SafePal Wallet, claiming his account was under investigation. After transferring his funds to the wallet, the victim noticed suspicious behavior and immediately contacted his friend Carlos Mak, a Binance staff member, who confirmed he was being scammed.
Consequently, he attempted to transfer his funds from the SafePal Wallet, and the scammer noticed. This resulted in a race to move the funds between them. However, he ran out of gas fees when trying to swap some ERC-20 tokens. Zhou surprisingly received some ETH in the SafePal Wallet, and the asset he intended to swap was stolen immediately.
Overall, he incurred a loss of $200 in an unspecified ERC-20 token. Meanwhile, other Binance users in the comment section also confirmed that they received a similar message recently.
Safety Tips
There has been a rise in SMS Spoofing scams in crypto lately. This tactic involves manipulating the sender ID or SMS gateway relating to a crypto platform to make the message appear legitimate.
As this malicious practice gains momentum, users must conduct due diligence on any SMS requesting urgent action.
Instead of calling numbers attached to the message, users should check the related platform’s official contact details from their website. Most crypto platforms, including Binance, will never ask users to transfer funds to an external wallet. Hence, caution is necessary to avoid falling prey to SMS spoofing scams.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
