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There is a new type of scam happening in the cryptocurrency world recently: the shared seed phrase scam.
This scam manipulates cryptocurrency users into sending the funds from their supposedly compromised wallets to 'safe' wallets that are actually set up by scammers.
If you only have five minutes today to learn how to protect yourself against this scam, this is the guide you need to read.
At Binance, your security and the security of your assets is our top priority. With the growing interest and adoption of digital assets, a new scam targeting cryptocurrency users is on the rise, known as the shared seed phrase scam. Scammers impersonate cryptocurrency professionals to ask victims to import a new seed phrase to set up a wallet and transfer their assets to it. After that, the scammers start draining the new wallet and vanish without a trace.
Take a moment to read the information below and stay vigilant to protect your funds and accounts.
How the shared seed phrase scam works
The seed phrase of a cryptocurrency wallet, also known as a recovery phrase or mnemonic phrase, is a sequence of 12 to 24 randomly generated words used to create and recover the private keys associated with the wallet. If the wallet owner forgets or loses the address or private key, the seed phrase can help restore the wallet and regain access to the corresponding funds.
Criminals want to know your seed phrase to access the funds in your wallet. However, with the shared seed phrase scam, the scenario is reversed: criminals share with the victim the seed phrase of the wallet they control and then manipulate the user to send their digital funds to this wallet. This is the typical sequence that scammers, posing as Binance representatives, carry out this scheme.
Step 1: Fake SMS/Call
Scammers posing as Binance employees will send you an SMS or call you, claiming that your account is compromised and asking you to transfer funds to a 'safe wallet.'
Step 2: Setting up a fake wallet
Scammers send a seed phrase via SMS or email, falsely claiming it is for your new 'safe wallet.' This is a clear red flag. Legitimate services will never ask for your seed phrase or send one for you to use.
Step 3: Theft of cryptocurrencies
After transferring cryptocurrencies to the wallet you do not own, the scammers controlling it will immediately steal your funds.
What you need to know:
Binance will never:
Request that you transfer funds out of your accounts for security purposes.
Contact you via SMS, calls, emails, or social media messages, unsolicited, to direct you to unknown phone numbers, social media profiles, software, or websites.
Generate a seed phrase for you, request access to your private keys, or send a seed phrase via SMS or email.
Ask you to install any third-party software.
Let's stay safe together
The 5 recommended practices:
Verify communications: use the Binance Verification or contact our official customer service channel.
Protect your seed phrase: create your seed phrase yourself and never share it with anyone. Store it securely in a private, offline location.
Use official channels: access our services only through our website or official app from trusted sources like Google Play or Apple App Store.
Report suspicious activities: notify immediately if you encounter suspicious requests or transactions.
Activate alerts: keep your contact information updated to receive transactions and security alerts immediately.
The 5 practices you should avoid:
Do not call unverified numbers: avoid calling phone numbers provided in unsolicited messages. Always use the official numbers published on our website.
Do not share confidential information: never share your seed phrase, private keys, or verification codes with anyone.
Do not trust unsolicited contact: scammers often use urgency to pressure you into acting. Take time to verify the authenticity of SMS, calls, emails, or messages on social media.
Do not click on unknown links or download unknown software: be cautious of links or QR codes in messages claiming to be from Binance.
Do not transfer cryptocurrencies to unverified wallets: always verify all instructions for moving funds and ensure the wallet is legitimate.
A shared commitment to security
Think of your cryptocurrency wallet as a high-security vault: even the most secure vault can be breached if you give the password to a thief. Stay alert and follow these guidelines to avoid scams and protect your assets. For more information, check the following resources:
If you have any questions or need assistance, contact our customer support team. We appreciate your trust. Together, we can create a safer crypto community for everyone.