On Tuesday, crypto exchange Binance announced that it has prevented more than $2 billion in potential losses from fraud and scams since January 2024. The exchange highlighted its risk management measures and “proactive approach” as key to protecting the funds of more than 1 million users from fraudulent activity.

Binance Prevents Over $2 Billion in Potential Losses

Binance, one of the largest cryptocurrency exchanges by trading volume, reported that it stopped the potential loss of $2.4 billion in user funds this year. From January to July, the exchange prevented funds suspected of being linked to crypto fraud and scams from leaving the exchange, protecting more than 1.2 million users globally.

The crypto trading platform explained that it took an active approach to detect and stop suspected malicious actors and ensure the safety of its customers and their assets. To achieve this, the exchange uses a “powerful risk engine” that uses a mix of artificial intelligence (AI) and manual reviews to manage real-time monitoring of all transactions.

This system would allow for the detection of suspicious transactions across all of Binance’s verticals, so that necessary measures can be taken quickly:

This allows the Binance team to dynamically detect suspicious transactions and take swift action to protect users. The system works across all of Binance’s verticals, protecting users in various domains including P2P trading, payments, crypto network withdrawals, and more.

The exchange also provided details on the flagging process, noting that irregular transactions are flagged during the crypto withdrawal phase. In this phase, “criminals attempt to siphon potential victims’ funds away from Binance’s security and risk management systems.”

According to the report, more than $1.1 billion in withdrawals related to suspected crypto fraud were prevented this year. This number represents approximately 45% of the total losses prevented.

Practical security approach to help crypto investors

Rohit Wad, Chief Technology Officer at Binance, emphasized the exchange’s efforts to “build and maintain industry-leading technological tools and processes that allow us to protect our users and their assets around the clock.”

In addition to the risk engine, the trading platform uses various tools and measures to protect users’ funds from crypto scams. The report noted that the exchange has ranked these measures into eight levels based on the severity of the risk to ensure a balance between security and user experience.

As a result, the exchange’s security team recently announced that it had secured millions of user funds that had been stolen from third parties. By July 31, 2024, Binance had recovered or frozen over $73 million in stolen funds, surpassing the $55 million secured in 2023.

The exchange noted that recovered funds increased by 40% in the first 7 months of this year thanks to its various security tools and measures. In addition, it has successfully helped users recover lost digital assets, with around 80% of the recoveries related to external hacks, exploits and theft.

Ultimately, Binance’s CTO urged investors to remain vigilant and take a practical approach to securing their assets to further combat scams. He suggested that users stay informed and employ strong security practices as these “play the biggest role in protecting their assets.”

Binance Coin (BNB) is trading at $571 in the weekly chart. Source: BNBUSDT on TradingView

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