Beware of SMS spoofing, Binance CEO gives a big warning

Binance CEO Richard Teng took him to social media platform X to warn community members about a new scam that destroys the crypto ecosystem. Teng flagged SMS spoofing as the next biggest strategy among con artists, noting the need to stay safe.

Beware of SMS spoofing

According to Richard Teng, scammers can send fake text that appears in the same thread as the official message. This is usually done to trick unsuspecting users into sharing sensitive information.

The update comes with a post detailing the tactics of the scammers. They try to take advantage of SMS gateways, but scammers can easily change the sender ID due to the weaknesses of the associated system.

Additionally, these scammers can change the sender ID via VoIP (Voice over Internet Protocol). This allows scammers to act as Binance personnel to abuse users. These scams are not new, but as other top projects say, they are necessary to protect users.

One of the main ways to avoid these scammers is to check all texts or messages from the official allegations. The hack is suspected of communication attempting to extract personal or sensitive information from users.

Crypto fraud won’t end soon

Binance and other top exchanges are constantly warning users for one unique fact. The scam won’t go away anytime soon. As most projects advance in fraud detection modalities, fraudsters also evolve in schemes.

Beyond flagged SMS spoofing scams from Binance CEOs, other methods include artificial intelligence (AI)-induced spoofing top leaders. Ripple Labs executives are the major victims of this on social media platforms such as YouTube and X.

Consistent warnings have allowed most projects to protect their communities from major losses. For those who have been victimized by victims, Binance, Coinbase and others, they have an aggressive transaction tracking tool that will help them recover some of the stolen funds with the help of law enforcement.