Richard Teng Warns Binance Users About New Crypto Scam
Binance CEO Warns Users About Rising Crypto Scams Amid Social Engineering Threats
Binance CEO Richard Teng has issued a stern warning to cryptocurrency users about a new wave of scams targeting the platform. According to Teng, fraudsters are impersonating Binance support representatives, contacting users directly, and attempting to trick them into altering sensitive account settings, particularly API configurations. He emphasized that Binance will never ask for passwords or account credentials over the phone, reiterating the importance of vigilance in the rapidly evolving crypto landscape.
A New Social Engineering Threat in 2025
The alert comes as the cryptocurrency sector faces an increasing number of sophisticated social engineering attacks. Criminal actors now frequently exploit human trust, posing as legitimate figures from well-known platforms to deceive unsuspecting investors. In recent months, scammers have evolved beyond phishing emails and fake websites, using direct phone calls and messages to gain access to high-value wallets.
Earlier today, Teng shared a message on X, the microblogging platform formerly known as Twitter, aimed at warning users about these scams. He wrote:
"Ring, ring! Could be a scam. We've seen a new scam: fake support calls trying to get you to change your API. Remember, we'll never ask for your passwords or credentials over the phone."
This message underscores the critical need for cryptocurrency users to verify any communications claiming to be from official sources, particularly when asked to modify sensitive security settings.
The Financial Consequences of Falling Victim
The warning follows a recent high-profile case in which a Bitcoin trader lost $91 million due to a social engineering scam. Scammers reportedly duped the trader into revealing wallet credentials, allowing the theft to occur. While the initial report did not specify which exchange was affected, subsequent warnings from Binance indicate that the platform was likely targeted.
In a formal statement, Binance noted:
"Scammers are sending fake SMS messages pretending to be from Binance. They want to trick you by saying your account is 'at risk' and make you call fake support telephone numbers or click dangerous links."
These scams are part of a broader trend in 2025, where criminals increasingly employ psychological manipulation to access digital assets. Experts note that, unlike conventional cyberattacks that exploit software vulnerabilities, social engineering scams exploit human error and trust, making them harder to prevent.
Recent Incidents Highlight Escalating Risks
The problem is not isolated. Earlier this year, Indian authorities arrested software engineer Rahul Agarwal in connection with the $44 million CoinDCX hack. While Agarwal claimed he was manipulated into installing malware on his official laptop, investigators alleged he orchestrated the theft. The case highlights the blurred lines between victim and perpetrator in these highly technical social engineering attacks.
Financial losses from such incidents are mounting. In addition to Binance-related scams, several other exchanges worldwide have reported similar social engineering attacks, often involving multi-million-dollar losses. Analysts warn that without robust security protocols and user education, cryptocurrency platforms remain attractive targets for fraudsters.
How Users Can Protect Themselves
Cybersecurity experts emphasize that prevention is crucial. Binance has recommended several key practices for users to safeguard their assets:
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Verify Communications: Always confirm the legitimacy of any calls, messages, or emails purportedly from Binance. Official support will never request sensitive information like passwords or private keys.
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Enable Two-Factor Authentication: Protect accounts with multi-layer authentication to reduce the risk of unauthorized access.
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Avoid Modifying API Keys Without Confirmation: Only adjust API settings through the official Binance platform, and verify any unusual requests independently.
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Use Official Channels Only: Access exchanges directly through verified apps or websites. Avoid clicking on links from messages or emails that claim urgency.
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Report Suspicious Activity: Inform the exchange immediately if a user encounters suspicious communication or potential scams. Prompt reporting can prevent further losses.
Industry Perspective on Social Engineering Risks
Security analysts note that the cryptocurrency sector’s rapid growth has inadvertently made users more vulnerable to social engineering tactics. With billions of dollars in daily transactions across global exchanges, scammers are highly motivated to exploit even minor lapses in user vigilance.
“Social engineering is the fastest-growing threat in crypto security,” says Dr. Laura Cheng, a blockchain cybersecurity researcher. “Unlike traditional hacks that rely on technical exploits, these attacks target the human element, which is inherently unpredictable. Users must adopt a mindset of skepticism and caution at all times.”
The Role of Education and Awareness
In response to rising scam activity, exchanges like Binance are investing heavily in educational campaigns. These include webinars, step-by-step guides, and real-time alerts designed to equip users with the knowledge needed to recognize fraudulent activity.
Moreover, community forums and social media channels are becoming essential platforms for sharing updates and warning fellow users about emerging threats. Cryptocurrency communities have taken proactive measures to circulate tips and best practices, making awareness one of the most effective defenses against scams.
Looking Ahead: Strengthening Exchange Security
As digital asset adoption accelerates globally, cryptocurrency platforms are also enhancing internal security measures. This includes AI-powered fraud detection systems, real-time monitoring of suspicious transactions, and stricter verification processes for high-value transfers.
Binance has publicly committed to reinforcing its security infrastructure, while continuing to educate users about potential threats. By combining advanced technology with user awareness initiatives, exchanges aim to reduce the impact of social engineering attacks.
Conclusion
The warning from Binance CEO Richard Teng serves as a crucial reminder that cryptocurrency users must remain vigilant. Social engineering scams are increasingly sophisticated, targeting even experienced traders and leveraging psychological manipulation to access funds. While technological safeguards are important, user education and proactive verification are equally critical in defending against financial losses.
As the cryptocurrency market continues to expand in 2025, the stakes are higher than ever. Users who adopt recommended security practices, remain skeptical of unsolicited communications, and verify every interaction with their exchange can better protect their assets. For the broader industry, the rise in scams underscores the need for continuous security innovation and public awareness campaigns.
Binance’s latest warning is a clarion call to all digital asset investors: vigilance, verification, and education are the most powerful tools against the evolving threat of cryptocurrency fraud.
Source: CoinGabbar
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