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Binance Australia Learn & Earn - Scams in The CryptoWorld

2022-04-28

Please take this opportunity to build your scam awareness and security skills with our first Learn & Earn: Scams in The Crypto World quiz and get rewarded for it!

This activity features a prize pool of AU $3000 to be shared by the first 300 users to complete the quiz with 85% or more accuracy. 

Participants who complete the following tasks via the quiz will be eligible:

  • Read the below “Scams in the Crypto World” Study

  • Login and fill out the quiz with 85% or more correct results

Enter Now

Activity Period: 28/04/2022 12:00 PM AEST to 02/05/2022 11:59 PM AEST

Scams in the Crypto World Study

Scammers - who are they?

Scammers try to steal your money or personal information — they are modern-day fraudsters. 

Scammers contact thousands of email addresses and phone numbers every day, so there's a good chance you'll be contacted by a scammer sometime if you haven't been already. When scammers first contact you, they won’t have any information about you and probably won’t even know if your email or phone number is working. They are just hoping that one of the thousands of people they are trying to scam will respond, and unfortunately, many people do.

How to spot a scam

Scammers try to collect personal information. This is identity theft. They do this in a number of ways. They may ask you for your bank details so they can transfer ‘a prize’ (for a competition you didn’t enter) into your account or threaten that they will lock your account if you don’t give them personal information to ‘verify’ your identity. They may ask if you could hold some money for them in your bank account, known as fake mule recruiting or offer goods or services that may never be delivered (credit card and money transfer scams).

Some scammers have very professional emails, websites or call centre staff to convince you that the offer is genuine. They often look and sound like the real thing — a real bank, a real online shop or a real internet service provider. Sometimes they pretend to be an organization like Centrelink or Australia Post or another service that many of us use.  

Beware of Cryptocurrency Scams

Today, the fast-changing state of the cryptocurrency market and the type of impact it will have on the future of commerce evoke many similar sentiments. As the attention of retail investors, speculators, and various types of institutional investors continues to turn toward the lucrative cryptocurrency markets, so too does the attention of scammers and cheats.

Key Takeaways:

  • The mad rush into cryptocurrency over the past several years has caught the attention of all kinds of investors, but it has also caught the attention of scammers.

  • Crypto scams most often aim to gain private information such as security codes or trick an unsuspecting person into sending cryptocurrency to a compromised digital wallet.

  • Social engineering scams such as giveaways, romance scams, phishing, extortion emails, and others mentioned within the article are a problem in broader society, but they are especially prevalent when it comes to cryptocurrency.

4 Common Cryptocurrency Scams and How to Avoid Them

As you become involved in the new digital monetary mechanisms known as cryptocurrency, it doesn't take long to recognize there's risk involved in these transactions. And we're not talking about the volatility of the market. Scams are everywhere online, and cryptocurrency exchanges are no different. As you consider investing in different startups and exchange platforms, be aware of the possibility of losing your cryptocurrency investments.

Here's a look at the more common scams and ways to avoid becoming a victim as you join the exciting future of cryptocurrency.

1- Imposter Websites

You may be following a solid tip from someone with a lot of expertise but still become a victim by accidentally visiting a fake website. There's a surprising number of websites that have been set up to resemble original, valid startup companies. If there isn't a small lock icon indicating security near the URL bar, think twice.

Even if the site looks identical to the one you think you're visiting, you may find yourself directed to another platform for payment. For example, you click on a link that looks like a legitimate site, but attackers have created a fake URL with a zero in it instead of a letter ‘o’. That platform, of course, isn't taking you to the cryptocurrency investment that you've already researched. To avoid this, carefully type the exact URL into your browser. Double-check it, too.

2- Fake Mobile Apps

Another common way scammers trick cryptocurrency investors is through fake apps available for download through Google Play and the Apple App Store. Although stakeholders can often quickly find these fake apps and get them removed, that doesn't mean the apps aren't impacting many bottom lines. Thousands of people have already downloaded fake cryptocurrency apps, reports Bitcoin News.

While this is a greater risk for Android users, every investor should be aware of the possibility. Are there obvious misspellings in the copy or even the name of the app? Does the branding look inauthentic with strange colouring or an incorrect logo? Take note and reconsider downloading.

3- Bad Tweets and Other Social Media Updates

If you're following celebrities and executives on social media, you can't be sure that you're not following impostor accounts. The same applies to cryptocurrencies, where malicious, impersonating bots are rampant. Don't trust offers that come from Twitter or Facebook, especially if there seems to be an impossible result. Fake accounts are everywhere.

If someone on these platforms asks for even a small amount of your cryptocurrency, it's likely you can never get it back. Just because others are replying to the offer, don't assume they aren't bots, either. You have to be extra careful.

4- Scamming Emails and text messages

Even if it looks exactly like an email and/or text message you received from a legitimate cryptocurrency company, take care before taking any action. Is the email/text message the exact same, and are the logo and branding identical? Can you verify that the email address is legitimately connected to the company? And never click on a link in a message to get to a site.

What to do with a scamming email or message

Below is an example of the recent scam text message that looks to be sent from Binance.

There are a number of red flags of which you should consider the message in the red box is a scam:

  1. The format of the message is different. The legitimate message coming from Binance always starts with ‘[Binance]’. The scam message, sometimes in poor language and spelling mistakes, often has a different format compared to the legitimate correspondence.

  2. Demand for urgent action. It is often accompanied by a thread of dire consequences if the target does not act immediately.

  3. It contains a link. A legitimate message often, if not always, does not contain any link for you to click indirectly.

  4. The URL address contained in the link is not the official website address. Do not click on any link in a text message. Always go to the official website and type in the full address diligently.

As a general rule:

Do not respond at all to any email and/or text message if you think it is a scam. Do not even reply to say you are not interested, because this tells them your email or social media account is active and they will send more scams.

Block the sender — this will stop more emails or messages coming to you from the scammer. Many scammers create multiple fake accounts, so you may get the same, or other scams, from different addresses. Block these too.

If you are not sure if the email or message is genuine, use Google to search the content in the email to see if others have been sent the same email and if it has been identified as a scam. Do a Google image search on a photo to see if it has been stolen from someone else’s site and is being used as part of the scam.

Look in the text for spelling mistakes and poor English as this is often a sign of a scam.

If a message or email comes from a friend and it seems unusual or out of character for them, ring or visit your friend to see if they really sent it before you consider replying.

Delete the messages or emails as they come in. If you have opened the message, close and delete it. Sometimes the message or email will have an attachment or link. In most cases, these attachments or links contain a hidden virus. Do not open suspect attachments or click on suspect links.

If you are buying online, use secure services to check out to reduce financial risks. Scammers may prefer that you send money orders, or use international transfers or even your banking details.

If someone asks for your personal details or needs to verify your banking or financial details, it may be a scam. Even if an email has an official logo and contact details but you are still suspicious, ring the organization to verify that they sent you the email.

How to report a scam and where to get help

Knowing how to report a scam is just as important as identifying it.

Above all else, be sure to report the scamming incident to:

  • Your banking institution and/or credit card company

  • Law Enforcement

  • scams@binancelite.com, a designated inbox for users in Binance Australia

  • Scamwatch

There are also sources to help you navigate through the event and provide help for your financial and mental well being:

Terms & Conditions

  • All users must have a verified Binance Australia Account.

  • Have read the “Scams in the Crypto World” Study.

  • Complete the quiz with at least 85% or more accuracy.

  • Binance Australia will reward the first 300 users for completing the quiz with 85% or more accuracy. One reward maximum per participant. Each winner will receive an AU $10 cash voucher from the Binance Reward Center and will be contacted via Binance Australia email within seven (7) days of winning a voucher. Winners must redeem their cash voucher within seven (7) days after being contacted through email. A total of 300 cash vouchers will be distributed for this promotion.

  • Binance and Binance Australia reserve the right to immediately disqualify any participants showing signs of fraudulent behaviour.

  • Binance and Binance Australia reserve the right at any time in its sole and absolute discretion to determine and/or amend or vary these terms and conditions without prior notice. This includes but is not limited to cancelling, extending, terminating or suspending this promotion, the eligibility terms and criteria, the selection and number of winners, and the timing of any action to be done, and all participants shall be bound by these amendments.

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Risk Warning: Trading cryptocurrencies involves significant risk and can result in the loss of your capital. You should not invest more than you can afford to lose and you should ensure that you fully understand the risks involved. Before trading, please take into consideration your level of experience, purchase objectives, and seek independent financial advice if necessary. It is your responsibility to ascertain whether you are permitted to use the services of Binance based on the legal requirements in your country of residence.