Binance claims to have prevented potential losses of over $2.4 billion and protected over 1.2 million users from scams and fraudulent activity in the first seven months of 2024.

In a statement released by the company today (Tuesday), the exchange said it has prevented potential losses of billions of dollars from January to July 2024. The platform’s risk management is said to have detected and blocked fraudulent activities that could have affected more than 1.2 million users.

Using AI to Detect Fraud

The leading exchange by trading volumes highlighted its internal risk management platform that uses artificial intelligence (AI) and manual review to monitor transactions in real time. This system dynamically detects suspicious activities in its ecosystem.

The most significant threat detected by Binance’s system occurred during the crypto withdrawal phase. In 2024 alone, the platform flagged suspicious withdrawals totaling over $1.1 billion, representing approximately 45% of the total potential losses that were prevented.

Binance’s approach to security is layered, integrating numerous controls across its ecosystem to minimize risk exposure. The system oversees various aspects of the platform, including peer-to-peer (P2P) trading, payments, and crypto network recordings, keeping users protected across every domain.

Real-time monitoring

In addition to real-time monitoring, Binance uses a wide range of tools to protect users from scams. These include customized pop-up notifications, cooldown features, and wake-up calls. The platform also offers various channels for users to raise appeals and resolve issues if they are flagged as potentially risky.

As of July 31, 2024, Binance has secured over $73 million in lost or misplaced funds from third parties. This achievement underscores the platform’s ongoing efforts to create a safer environment for all crypto users.

Earlier this month, Binance announced that it had recovered a significant amount of lost funds and frozen ill-gotten gains that had found their way onto the exchange. The exchange also said that it was working with industry peers and the public sector to support affected users.

It is estimated that 80% of the recovered and frozen funds are linked to hacks, exploits, and thefts that occurred outside of the Binance platform. The remainder are scams that also originated externally. However, this increase does not indicate an increase in criminal activity within the cryptocurrency space.

This article was written by Jared Kirui at www.financemagnates.com.