Scammers Now Using AI to Clone Crypto Experts, Binance Warns

Binance, one of the world's largest cryptocurrency exchanges, has issued a security alert warning users about the growing threat of fake listing agents attempting to exploit investors. The warning comes amid a broader global rise in cryptocurrency-related scams, particularly those involving deceptive agents who promise quick returns but deliver nothing in return. These agents often operate under false pretenses, mimicking the appearance of legitimacy to gain trust and access to sensitive financial information.

The alert highlights that scammers are increasingly sophisticated in their methods, often using cloned identities or deepfake technology to impersonate well-known figures or Binance employees. Binance has emphasized the importance of vigilance and advised users to verify the authenticity of any agent or platform before sharing private information, including wallet details or seed phrases. This aligns with broader global concerns over the misuse of artificial intelligence in fraud, which has enabled scammers to create convincing fake endorsements and misleading investment pitches.

The Australian Securities and Investments Commission (ASIC) has also reported a surge in investment-related scams, particularly on social media platforms, with a significant portion tied to cryptocurrency. In 2024 alone, over $945 million was lost to investment scams in Australia. ASIC noted that scammers are increasingly using AI to create fake trading bots, misleading websites, and cloaked platforms that vary in appearance depending on the user's location or device. The agency has taken proactive measures, including removing thousands of scam websites and hyperlinks, to protect consumers from these evolving threats.

Binance's advisory also stresses the importance of multi-factor authentication and the use of cold storage wallets to protect digital assets. It warns against any unsolicited requests for payment or access to account information, a common tactic used by scammers to trick users into surrendering control of their funds. The exchange further encourages users to report suspicious activities promptly and to double-check the legitimacy of any investment opportunity before committing funds.

In its broader efforts to combat online fraud, ASIC has expanded its powers to include the takedown of social media ads linked to investment scams. This move is part of an ongoing strategy to disrupt fraudulent activities where they are most prevalent—online platforms. Over the past two years, ASIC has removed over 14,000 scam websites, including thousands related to cryptocurrency. The agency's "Stop, Check, Protect" campaign encourages users to verify the legitimacy of investment platforms by checking if they are registered and listed on official investor alert lists.

The increasing prevalence of scams in the cryptocurrency space underscores the need for heightened awareness and proactive measures to protect personal and institutional assets. While no system is entirely immune to fraud, the combined efforts of regulatory bodies, exchanges like Binance, and informed users can significantly reduce the risks associated with these fraudulent schemes.