The Hong Kong police force has recently issued an alert regarding an alarming increase in phishing scams targeting Binance users in the region. These scams have resulted in a combined loss of over $450,000. Through its CyberDefender program, the Hong Kong police have emphasized the importance of raising awareness about these fraudulent activities.
Phishing Scams Impersonating Binance
Fraudsters have been impersonating Binance and sending text messages to users, claiming that their accounts need verification. These messages have urged users to click on a link for identity verification, with a warning that failure to do so would result in their accounts being deactivated. Unfortunately, unsuspecting users who clicked on the link unknowingly fell victim to hackers, who then emptied their crypto wallets.
“Recently, fraudsters posing as Binance sent text messages claiming that users must click the link in the message to verify their identity details before a deadline, otherwise their account would be deactivated,” the warning read.
The police have reported 11 such incidents in the past two weeks, with individuals unknowingly disclosing their account login details. To combat these scams, the police have urged anyone receiving suspicious messages to report them immediately.
Enhancing Security Measures
In response to the rising threat of phishing scams, the Hong Kong police force has shared the Securities and Futures Commission’s list of authorized virtual asset platforms. This list helps residents identify legitimate exchanges and currently includes only Hashkey and OSL, which hold full retail operating licenses from the SFC.
Additionally, the Hong Kong Police Force launched CyberDefender, a metaverse platform aimed at educating the public about the potential dangers associated with Web3 and the metaverse. This platform, developed by the Cyber Security and Technology Crime Bureau (CSTCB), aims to prepare Hong Kong citizens for the challenges of the digital age, with a specific focus on technology crime prevention.
Despite Hong Kong’s growing regulatory stance toward digital assets, recent controversies, such as the JPEX saga, have raised concerns. JPEX, claiming to be a licensed cryptocurrency exchange, targeted retail investors with promises of high returns. However, on September 13, Hong Kong’s Securities and Futures Commission accused the platform of operating without a license and engaging in suspicious activities.
“At a time when people still don’t completely understand what Web3 is, the JPEX case has created a negative impression for people in Hong Kong on digital assets and the broader Web3 industry,” Cyrus Ip, a crypto venture investor and chief business officer at artificial intelligence start-up DreamWld Technology, said.
Industry experts worry that the fallout from the JPEX debacle will pose significant challenges for virtual asset companies and impede the government’s efforts to expand the sector.
