Changpeng Zhao (CZ), the founder of cryptocurrency exchange Binance, warned the community about security.
Binance CEO Changpeng Zhao has warned of a scam targeting the crypto community. In this scam scheme, users are tricked by using fake wallet addresses and their money is stolen by sending dust transactions.
Binance CEO CZ warns the community via Twitter
After the recent fraudulent events in the cryptocurrency world, CZ warned the community on Twitter.
Scammers generate addresses with the same starting and ending characters as the victim’s wallet address. After the mirrored address is created, the scammers send target dust transactions to the victim’s transaction history. If the victim copies and pastes an address from the dust transaction, the funds are sent to the scammer.
I want to share this (luckily) unsuccessful, but very clever and close scam incident from yesterday 👇. Saved $20m. Hope it may also save you one day.
The scammers are so good now they generate addresses with the same starting and ending letters, which is what most people check… https://t.co/DFpdX8aNay
— CZ 🔶 Binance (@cz_binance) August 2, 2023
A veteran crypto operator fell victim to this scam on August 1 and sent $20 million worth of cryptocurrencies to a dusty address. However, he soon realized the mistake and asked Binance for help, requesting a freeze of the funds.
Similar scams have also been reported by Coinbase users. Scammers use the name of the crypto exchange to contact customers and engage in scam and phishing attacks.
It is recommended that users be careful against such scams and use domains instead of copying and pasting addresses when making money transfers. In addition, using strong and unique passwords for crypto accounts and enabling two-factor authentication in applications are also cited as important security measures. The quick response of exchanges like Binance can also help users avoid security incidents.
