Binance has announced plans to roll out a new security feature designed to help users detect and prevent SMS phishing scams. The move comes in response to an increasing wave of phishing attacks targeting crypto users, with scammers impersonating Binance representatives to steal funds.
Addressing the Growing Threat of SMS Phishing
Binance’s decision follows a recent phishing attack that targeted Web3 enthusiast Joe Zhou. Zhou received a fraudulent SMS claiming that his Binance account was being accessed from North Korea. The scammer, posing as a Binance representative, convinced him to create a SafePal wallet and transfer funds to it. However, upon verifying with a Binance contact, Zhou realized he was being scammed. By the time he attempted to recover his assets, the scammer had already withdrawn additional funds, though some transactions failed due to insufficient gas fees.
The Rising Wave of Crypto Phishing Attacks
Zhou’s experience is part of a broader trend of increasing phishing attacks in the crypto space. On February 18, Cyprus Police’s cybercrime division issued a warning about large-scale SMS scams impersonating Binance. Victims were tricked into revealing their login credentials, allowing scammers to access and drain their accounts.
Other major platforms have also been targeted. Between December 2024 and January 2025, Coinbase users suffered significant losses from social engineering scams. According to blockchain investigator ZachXBT, at least $65 million was stolen during this period. Scammers used phishing emails, fake customer support calls, and counterfeit websites to manipulate users into transferring funds. These stolen assets were then laundered through privacy-focused services like Tornado Cash.
The Scale of Phishing-Related Losses
According to a CertiK report, phishing-related losses in 2024 amounted to $1.05 billion, accounting for nearly half of the $2.36 billion lost in 760 on-chain security incidents. The second quarter of 2024 was particularly devastating, with 67 phishing attacks resulting in $433.7 million in losses.
Binance’s Security Initiative
While Binance has yet to reveal specific details on how the new security feature will work, it is expected to enhance user protection by detecting and flagging phishing attempts before they lead to financial losses. The initiative reinforces Binance’s commitment to bolstering security measures amid rising threats in the crypto industry.
As phishing scams grow more sophisticated, Binance’s new feature could play a crucial role in safeguarding users from falling victim to fraudulent schemes. The crypto community will be watching closely as Binance unveils further details on this much-needed security enhancement.
