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Hong Kong Police Raise Alarm as Binance Users Lose $450K to Phishing Scam

The Hong Kong police force has cautioned about a new phishing scam technique that bad actors are using to target Binance users in the region. According to a Monday post, no less than 11 users of the platform have fallen victim to the scam already.

The police took to its Facebook page dubbed “CyberDefender,” to make the announcement. It said that the phishing scam was perpetrated through text messages sent to unsuspecting victims, who thought the messages came from the platform. Part of the statement reads:

“Recently, fraudsters posing as Binance sent text messages claiming that users must click the link in the message to verify their identity details before a deadline, otherwise their account would be deactivated.”

Upon clicking the link and “verifying” their identities as the text instructs, however, hackers would have full control of such a user’s Binance account. Subsequently, the hackers then move to steal all assets that that user may have in their wallet, says the police.

The police also confirm that all 11 victims, so far, have reported combined losses to the excess of $446,000. That is approximately 3.5 million Hong Kong dollars in just two weeks. It then urged users who believe they have also received similar fishy text messages to immediately make the report on the “fraud prevention” section of its official website.

Hong Kong police also seized the chance to share what it calls an updated list of verified crypto trading platforms. According to the post, only two crypto exchanges – HashKey and OSL – have the full approval of the Hong Kong Securities and Futures Commission (SFC).

Rising Rates of Phishing Scams in Hong Kong

Meanwhile, it might be worth mentioning that crypto-related scams and fraudulent activities are becoming quite rampant in Hong Kong. That is the untenable situation in which crypto investors in the region have recently found themselves.

Recall the recent scam that the JPEX crypto exchange reportedly pulled after luring residents with the promise of high returns. The exchange raised its withdrawal fees on September 15, making it impossible for investors to access their funds.  According to local police, over 2,300 investors were affected, with their losses estimated to be worth around $180 million.

Historically, the JPEX scandal currently stands as the biggest financial fraud to ever hit Hong Kong. However, the SFC is now keeping an eagle eye on the crypto industry starting with crypto platforms.  The regulator announced that it would publish a list of both fully licensed and “suspicious” crypto platforms in hopes of curbing future fraud attempts.

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Hong Kong Police Raise Alarm as Binance Users Lose $450K to Phishing Scam