Local reports reveal that fraudsters claiming to be Binance have stolen over HK$ 3.5 million from victims.
Binance’s popularity as a cryptocurrency exchange has made the platform a preferred option for fraudsters targeting unsuspecting investors. In a recent development, the Hong Kong police revealed an influx in the number of citizens contacting the agency to report being affected by a Binance phishing scam.
According to the local news agency, Mingpao, the Hong Kong Police have received a report of 11 such cases in the past two weeks. Victims claim to have lost a combined HK$ 3.5 million (approximately $446,000), with the culprit primarily using social media platforms.
The report also sheds light on the tactics used by the fraudsters. The victims receive messages with a link leading to a website that resembles the Binance homepage. Upon visiting the malicious site and providing their login details, the fraudsters use the credentials to access the victim’s main Binance account to siphon their assets.
The Hong Kong Police provided basic security tips to investors, reminding them to pay attention to the security risks involved in the different platforms and blockchain networks they use. The agency further urged users to double-check links with official platforms and not to provide their login information when in doubt.
Most importantly, the police urged users to use only licensed Hong Kong crypto exchanges, with the country recently introducing a licensing regime for such platforms. Hong Kong also made provisions to allow retail investors to trade crypto as part of its recently introduced rules.
Crypto Startups Exploring Hong Kong Move
The presence of clear regulations and concerted efforts by authorities, such as the Hong Kong Police, to protect investors has made the region a favorable destination for cryptocurrency startups.
In August, Ripple announced plans to collaborate with Hong Kong’s thriving blockchain ecosystem. Other major crypto firms, such as OKX, HTX (formerly Huobi), and Bullish, have also indicated interest in acquiring a Hong Kong license.