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This report highlights the Anti-Fraud Refund Initiative 2024, a joint effort by multiple teams at Binance, designed to enhance user security.
Binance's Anti-Fraud Restitution Initiative operates 24/7 to prevent scams, protect users, and provide restitution to victims.
Learn about the strategies, methodologies, and technology behind Binance’s Anti-Fraud Refund Initiative and see the impressive results that underscore Binance’s tireless dedication to protecting our users.
Introduction
In 2024, the cryptocurrency landscape continued to grow, offering vast opportunities and transformative financial freedom. However, as innovation emerged, so did the sophistication of financial scams across the crypto and traditional financial landscape. At Binance, trust isn’t just earned—it’s protected. Our commitment to user security remains at the forefront of everything we do, ensuring that the crypto journey is as safe as it is transformative.
This report highlights Binance’s achievements in combating scams, recovering funds, and raising awareness to protect our community. It demonstrates how Binance sets the gold standard in the cryptocurrency industry for risk management, user education, and proactive security measures.
The growing threat of the scam industry
The global scam industry, which spans both traditional and digital finance, has evolved into a highly organized network, with criminals using elaborate schemes to exploit victims. Fake investment platforms with professional-grade websites lure people with promises of guaranteed returns. Phishing attacks trick users into revealing sensitive information. Social engineering manipulates emotions to bypass logical defenses.
A chilling adage in scam circles goes: “anyone can be scammed; it’s just a matter of finding the right method.” Scams can target anyone, with victims ranging from 90-year-olds to 18-year-old students and professionals including law enforcement officers, doctors and lawyers. The evolving nature of the scam industry creates an urgent need for major crypto platforms like Binance to adapt, respond and lead the fight against these threats.
Binance Anti-Fraud Refund Initiative
The Anti-Fraud Restitution Initiative operates 24 hours a day to recover funds from scam victims. This initiative combines cutting-edge risk management technology with empathetic customer service support to deliver effective results.
The Four Pillars of the Anti-Fraud Refund Initiative
The Four Pillars of Binance’s Anti-Fraud Refund Initiative
1. Proactive protection
Binance believes that prevention is the most powerful form of protection. Our proactive measures focus on staying one step ahead of scammers.
Global collaboration: partner with international authorities to anticipate and combat emerging threats.
Information gathering: Infiltrating fraudulent networks to obtain critical information.
Targeted Alerts: Notify users in high-risk areas with personalized alerts. Over 15,000 personalized alerts and over 2,000 risk assessment forms were sent to users daily this year.
Personalized interventions: Provide interventions for vulnerable users, such as seniors and people who have already been affected by scams.
Blacklist maintenance: Malicious addresses are blacklisted immediately, helping to protect users in a timely manner and prevent further losses. Overall, over 47,000 unique addresses were flagged as risky addresses in 2024 alone.
2. 24-hour safety net
Despite Binance’s frequent warnings, some users still proceed with suspicious transactions. To protect them, we have implemented a robust security mechanism:
Temporary Fund Freeze: Funds transferred to flagged Binance accounts are automatically frozen for 24 hours.
Active Monitoring: During this freeze, Binance investigates the recipient's activity and assesses potential risks.
User reporting period: Users have 24 hours to report if they suspect they have been scammed.
Swift action on reports: If a report is submitted, Binance reviews the case immediately, contacts the recipient, and conducts a thorough investigation.
Refund Process: If the transaction is confirmed as fraudulent, Binance will review the case and determine the appropriate refund action. Refunds are not guaranteed.
24/7 support: This is provided via chat for users who are identified as high-risk for scams. In 2024 alone, Binance processed 20,000 chats with vulnerable users to alert them to the risks of their transactions and prevent withdrawals of funds to scammers.
This 24-hour protection has saved many users from suffering irreversible losses, giving them a second chance to protect their hard-earned money.
Binance's 8 levels of anti-fraud prevention .
3. Rapid response to recovery
Prevention isn’t always successful. When all else fails and scams happen, every second counts. Binance’s rapid risk response system is designed to act effectively and quickly:
Transparent reporting: An easy-to-use feature on the transactions page enables immediate reporting.
AI-powered analysis: Reports are instantly evaluated by our advanced fraud detection model.
Fast action: Suspected scammer accounts are frozen within seconds to prevent further losses.
Thorough investigations: Comprehensive manual reviews are performed in sequence, ensuring accuracy and fairness in every case.
Proactive monitoring: We proactively monitor fund flows to identify suspicious activity. However, the responsibility for tracking and recovering funds lies primarily with the responsible authorities.
Binance encourages victims to provide detailed evidence as this greatly improves the likelihood of recovering funds. We support and facilitate refunds to victims of verified scams 24 hours a day.
4. Support for silent victims
Binance recognizes that many scam victims suffer their pain in silence, overwhelmed by feelings of shame and guilt. These victims often feel paralyzed by what happened, believing there is no chance of recovering their funds. We have developed a support system to identify and contact these victims, working closely with Customer Service representatives to assist these silent victims via chat, encouraging more reporting and successful fund recovery.
Proactive Outreach: Binance contacts users who transferred funds to scammers’ frozen accounts.
Guided recovery: Binance assists victims with the reporting and funds recovery process step by step.
Equal support: Every victim receives fair and empathetic treatment, regardless of whether they have spoken out or not.
By offering support to those who feel unable to seek help, Binance strives to transform silent suffering into shared healing and recovery.
Monitoring the flow of funds to maximize recovery
Scammers often try to cover their tracks by moving stolen funds across multiple accounts and platforms quickly. Binance’s advanced tracking systems monitor the inflow and outflow of funds. By extending its reach, Binance allows for the freezing of associated accounts and significantly increases the chance of recovering users’ funds in full.
Flow of stolen funds and restitution process on Binance.
AI and Machine Learning: The Foundation of Risk Management
Binance’s use of machine learning and artificial intelligence represents a game-changer in combating scams and fraudulent activity. These technologies form the basis of Binance’s proactive risk management strategies.
How Machine Learning Models Work at Binance
Data aggregation and analysis: Binance systems analyze large amounts of data in real-time to identify anomalies that may indicate fraud.
Training and personalization: Over 50 machine learning models have been developed by 2024, specifically tailored to identify fraudulent activity on the Binance P2P platform. These models are continually updated, with 14 major updates implemented this year, to adapt to the ever-evolving tactics used by scammers.
Behavioral Profiling: AI-based behavioral profiling helps distinguish legitimate user activities from potential scams.
Predictive analytics: Predictive models anticipate potential scam attempts before the fraudulent transaction is completed.
Real-time monitoring: Machine learning algorithms operate in real-time, enabling our teams to intervene within milliseconds.
Impressive results in numbers
The numbers speak for themselves. We invest significant effort, tools, technology, and resources into combating scams and recovering funds for victims. Here are some of the highlights from 2024 that capture our user-centric approach and relentless dedication to user safety.
Funds recovered: US$9.1 million
Successful monthly recoveries: 80
Proactive calls to potential victims: 30,000 calls
Overall losses avoided: over $129 million
Malicious addresses on blacklist: 47,000
Number of daily alerts sent to users: over 15,000
Know your security tools
Awareness is the first line of defense. Binance provides users with comprehensive tools and resources to protect against scams.
Stay updated
Stay up to date with the latest Binance guides, tools, and resources to protect users from scams. Make full use of our built-in tools such as Binance Verification and EML Verification Service, custom anti-phishing code in Binance emails, and more.
How to report scams on Binance
Binance has streamlined its reporting process to ensure users can alert the platform about suspicious activity quickly. Users can visit the Binance Support Page and follow the detailed steps provided to file a report.
Call to action: join the fight against scams
To our users
Report it as soon as possible and take appropriate action when you receive a risk alert.
Reporting scams promptly increases the likelihood of successful fund recovery and helps Binance act quickly against bad actors.
Please pay close attention to our risk alerts. Do not dismiss them as “mere reminders” and definitely do not ignore them. When we alert you, it means there is a potential risk of fraud in your transaction.
Here are some examples of our risk alerts:
For the general community
Share your stories.
Raise awareness about these scams. Education is our most powerful weapon against fraud. The safety of our community depends on the collective efforts of everyone involved.
Binance Commits to Protecting Its Users
At Binance, every recovery is a victory — not just for the individual, but for the entire community. Each case represents a person, a family, a dream that was nearly destroyed.
While Binance actively strives to help victims recover their stolen assets, do not rely solely on this process as many factors can affect its success. Prevention is the most effective measure — proactively avoiding fraud can protect you from a lot of future pain.
Whether you’re a tech-savvy investor or someone who’s just starting their crypto journey, we’re here to protect you in the best possible way. Remember, you’re never alone on this journey. Binance is with you, ready to prevent, protect, and recover. Together, we can build a safer crypto ecosystem for everyone.