Binance has successfully prevented potential user losses of over $2.4 billion in the first seven months of 2024.
In the first seven months of 2024, Binance, one of the world’s largest cryptocurrency exchanges, has declared that it has effectively averted potential losses of over $2.4 billion due to scams and fraudulent activities.
This accomplishment has safeguarded over 1.2 million users worldwide from falling prey to these schemes, as per Binance.
The exchange attributes this achievement to its advanced risk management and real-time monitoring systems, underscoring the importance of user safety.
How Binance Prevented $2.4 Billion in Losses
Binance’s robust risk engine was instrumental in identifying and preventing fraudulent transactions from January to July 2024.
This engine, which combines artificial intelligence (AI) and manual review, continually monitors transactions across all of Binance’s services.
It is intended to dynamically identify dubious activities and promptly implement measures to protect users.
This system identified one of the most significant hazards during the crypto withdrawal process.
Binance disclosed that suspicious withdrawal attempts were responsible for over $1.1 billion (approximately 45%) of the $2.4 billion in prevented losses.
In these cases, perpetrators attempted to transfer funds outside Binance’s security perimeter; however, the system effectively identified and halted the transactions.
Rohit Wad, Binance’s Chief Technology Officer, underscored the significance of these protective measures as he stated:
“Being user-focused has always been a key priority for us at Binance, which underlies our emphasis on building and maintaining industry-leading technological tools and processes that enable us to protect our users and their assets around the clock.”
Wad also emphasised the importance of perpetually enhancing these systems to remain ahead of potential threats, as malevolent actors constantly seek new methods to compromise cryptocurrency platforms.
A Security Strategy with Multiple Layers
Binance’s security strategy is multifaceted. It implements a variety of controls to reduce the risk of exposure throughout its ecosystem.
Peer-to-peer trading, payments, and network withdrawals are all subject to these measures.
The exchange has incorporated customised pop-up notifications, cooldown features, and wake-up calls to notify users of potential hazards.
Furthermore, Binance provides users with various options for appealing and resolving issues if their transactions are identified as suspicious.
As of July 31, 2024, Binance has secured over $73 million in misplaced or lost funds for external parties in its ongoing efforts to protect the broader crypto community.
This encompasses blocking assets acquired through illicit activities and recovering substantial sums of lost funds transferred to the exchange.
In addition to its internal initiatives, Binance is actively engaging in collaborations with the public sector and industry counterparts to assist users impacted by fraudulent activities and scams.
The exchange’s efforts to recover and freeze funds have demonstrated that up to 80% of these activities are traceable to breaches, exploits, and thefts outside the Binance platform.
Binance emphasises the significance of user vigilance, even though these measures have effectively safeguarded users. Rohit Wad continued to encourage users to exercise caution, asserting,
“While our team has implemented extensive measures to protect your funds, ultimately, users themselves play the largest role in safeguarding their assets. Stay informed, use strong security practices, and be cautious of potential scams.”
It is worth noting that a recent report indicated that Binance is the most popular cryptocurrency exchange among users who speak Chinese.
It has a greater than 60% market share in crucial segments like the highest earners, users holding the most significant amounts of cryptocurrency, and participants in initial crypto listings.
96% of respondents indicated that Binance was the platform they used most frequently, a remarkable sign of satisfaction.
