We all know that scams in the world of cryptocurrencies have always existed, from Ponzi schemes to fraudulent tokens. All these tricks have found a way to deceive and capture the unwary to seize their monetary funds. This not only happens in the cryptoverse, it also happens in investment markets such as Forex and many more. Different companies and companies have joined forces to fight against these scams, and Binance is one of them, developing Binance Sentry.
What is Binance Sentry and how does it work?
Binance explains, in a recent blog post, that Binance Sentry was established in 2018 to complement its existing security infrastructure. Basically, it is an internal risk investigation unit that is structured within the security team of Binance, the world’s largest exchange.
Binance Sentry conducts investigations related to the identification and recovery of stolen assets, facilitating them. Thus they seek to alert users to scams and fraudulent activities.
They developed it based on the experience and knowledge of the members belonging to the security of the platform, and express that “this team of professionals uses both Blockchain and open source analytics to better understand the crypto threat landscape and what we as a community face together“
In addition, the investigation unit has partnered with other analysis service providers, law enforcement agencies and various entities that help identify threats. All this in order to strengthen its security and investigation techniques to monitor malicious activities.
What are the most common scams?
The most frequent scam that runs the cryptoverse are fraudulent “investment plans” that promise the multiplication of initial funds in cryptocurrencies easily and quickly. Sounds very good to be true, right?
Many of these “plans” not only trade in Bitcoin or any other crypto, but are also present in investments with Fiat currencies, such as Forex.
These scams have been unmasked multiple times by the media. However, people who are not as experienced in the investment world and tend to be “innocent” somehow continue to fall. These tricks are mainly aimed at this audience, the novice. For this reason, Binance Sentry is born, to protect people.
For example, him Draft Report on Organized Crime and Corruption (“OCCRP”) has published a series of investigations into one of these “investment” networks that operates from a call center in Kiev.
Binance talks about the strategies of fraudulent networks
Of course, these schemes usually operate under different names, having branches in various parts of the world in order to go unnoticed. They can also operate with different currencies depending on the branch, one can be managed in euros, for example, and the other in cryptocurrencies.
Regulatory bodies such as the Financial Conduct Authority (FCA) of the United Kingdom or the Commissione Nazionale per le Società e la Borsa (CONSOB) of Italy have illustrated how scammers establish businesses with multiple identities.
Sometimes they even use fake regulatory authorities and fake consumer organizations. They seek to legitimize their plans at all costs, in addition to reassuring (or intimidating) investors who are considering giving them their funds.
Binance develops how these networks operate in his article, being investigated by Binance Sentry:
“Among the multiple networks Binance Sentry has recently examined, we have also seen the use of related ancillary services. These include marketing teams and law firms, human resources teams and project classification sites. Their aim is to cultivate credibility and continue to support the activities of these networks, many of which are called allegedly legitimate operations.“
In addition, the victims of these scams are often located worldwide, and the fact that jurisdictions change from country to country makes investigations more complex.
Binance Sentry and #StaySAFU
However, Binance Sentry seeks to assist in these investigations. Citing Binance’s statements, they also engage in “improve the safety, security, and livelihoods of our customers and the entire ecosystem“
Binance Sentry goes hand in hand with the #StaySAFU campaign, which invites members of the Binance platform to be cautious with promises of rapid returns on investment. They recommend doing rigorous research of services and projects before using or investing in them.
Finally, remember: always be suspicious of platforms or investment plans that promise absurd amounts of money if you invest in them. Do your research, look for credible reviews, and draw your own conclusions.