Authorities Target Crypto Scammers Posing as Binance in Australia

Australian authorities have launched a crackdown on crypto scammers impersonating Binance, the world’s largest crypto exchange by trading volume, following a series of fraudulent attacks targeting local users. 

The Australian Federal Police, National Anti-Scam Centre, and Binance Australia are warning victims about the sophisticated scam, which exploits fake messages to steal crypto.

The AFP revealed that over 130 potential victims had been alerted as part of a proactive effort to combat the scam in a joint statement released Wednesday.

The fraudsters previously used SMS and encrypted messaging platforms to pose as Binance representatives, claiming that victims' accounts had been breached. 

The messages, which appeared to be from legitimate existing threads with Binance, included fake verification codes and a contact phone number that led victims to an imposter hotline. 

Once they called the number, victims were advised to transfer their cryptocurrency to a "trust wallet," controlled by the scammers.

The crypto scam was identified through Operation Firestorm, a global effort launched last year to disrupt international crime syndicates targeting Australians through digital fraud. 

The AFP worked with international law enforcement to identify the perpetrators, but once the funds were transferred, they were quickly moved through a network of wallets and laundering channels, making recovery nearly impossible.

"The AFP has worked closely with our partners at the NASC to ensure any victims in Australia targeted by these scammers were identified swiftly and given advice to help protect their cryptocurrency accounts," AFP Commander Cybercrime Operations Graeme Marshall said in a statement..

Authorities have advised the victims of this scam to contact their bank or the crypto exchange immediately and report the incident to the police through ReportCyber, quoting reference number AFP-068. 

Binance Australia has co-operated with the local authorities to crack down on the scam while being embroiled in its own legal challenges.

In December 2024, the Australian Securities and Investments Commission (ASIC) launched legal proceedings against Binance Australia Derivatives, accusing the platform of misclassifying retail investors and denying them essential consumer protections.

The coordinated effort of the Australian authorities comes on the heels of rising concerns around crypto scams in Australia. 

Last month, the Australian Competition and Consumer Commission raised alarms about the potential impact of relaxed crypto regulations in the U.S. under President Donald Trump’s administration. 

ACCC Chair Gina Cass-Gottlieb pointed out that the U.S. government's move to ease crypto regulation could lead to 'horror scenarios' for investors.

Those fears were reflected in the ACCC’s annual scam report, which revealed Australians lost over $1.3 billion to investment scams in 2023, with crypto scams being a major contributor.

Edited by Sebastian Sinclair