Australian Police Alert 130+ Victims of Binance Impersonation Scam

TLDR

• Australian authorities have alerted over 130 potential victims of a sophisticated crypto scam impersonating Binance exchange
• Scammers used spoofed SMS and encrypted messages that appeared in legitimate Binance message threads, instructing victims to transfer funds to fraudulent “trust wallets”
• The operation was identified through “Operation Firestorm,” a global effort to disrupt international crime syndicates targeting Australians
• Victims are advised to contact their bank or crypto exchange immediately and report the incident to police via ReportCyber with reference number AFP-068
• Binance Australia has cooperated with authorities while facing its own legal challenges from Australian regulators

Australian federal authorities have launched an alert campaign warning cryptocurrency users about a sophisticated scam impersonating Binance, the world’s largest cryptocurrency exchange. Over 130 potential victims have been contacted as part of this proactive effort to combat digital fraud targeting crypto holders.

The National Anti-Scam Centre (NASC), working with the AFP-led Joint Policing Cybercrime Coordination Centre (JPC3), sent text messages and emails on March 20, 2025, to alert people who may have been targeted. The potential victims were identified through messages discovered on an end-to-end encryption platform.

The scam operates in a way that mimics traditional financial fraud tactics. Targets receive messages via SMS or encrypted messaging platforms from someone pretending to be a Binance customer support representative. These messages claim that the victim’s cryptocurrency account has been compromised.

How Scammers Operate: The Trust Wallet Trap

What makes this scheme particularly convincing is that the fraudulent messages contain fake verification codes and often appear within legitimate existing message threads with Binance. This technique, known as “spoofing,” makes the scam much harder to detect.

The messages include a support phone number for victims to call. When they do, they’re instructed to protect their accounts by transferring their cryptocurrency to a “trust wallet.” This wallet is actually controlled by the scammers, allowing them to steal the assets.

The fraud was uncovered through Operation Firestorm, a global initiative launched in 2024. This operation aims to disrupt offshore crime networks that target Australians through various scams, including romance, cryptocurrency, and investment schemes.

AFP Commander Cybercrime Operations Graeme Marshall explained the challenge of recovering stolen funds. Once the cryptocurrency is transferred to the scammer-controlled wallet, the assets are quickly moved through a network of wallets and money laundering accounts. This rapid movement makes seizure or recovery nearly impossible in most cases.

“The AFP has worked closely with our partners at the NASC to ensure any victims in Australia targeted by these scammers were identified swiftly and given advice to help protect their cryptocurrency accounts,” Commander Marshall said in a statement. “Anyone who received an SMS or email warning from the NASC must take it very seriously.”

Authorities advise anyone who has transferred cryptocurrency to a supposed “trust wallet” to report it immediately. They should contact their bank or digital currency exchange first. Then they should report to police via ReportCyber, using the reference number AFP-068.

Australian Competition & Consumer Commission Deputy Chair Catriona Lowe highlighted the growing problem of impersonation scams. “Impersonation scams rely on people trusting that the text, email or phone call they get is legitimate and scammers go to lengths to create the appearance of legitimacy,” Lowe said.

She urged all Australians to verify communications by contacting organizations directly. She recommended using only official contact details from websites or apps to check if messages are real.

Binance Chief Security Officer Jimmy Su emphasized that user protection is the company’s top priority. “Scammers often impersonate trusted platforms — like Binance and others — by exploiting certain telecom loopholes to manipulate sender names and sender phone numbers to create urgency,” Su explained.

Su advised users to verify communications using Binance Verify, the company’s tool for confirming official Binance channels. He warned against sharing sensitive information like seed phrases or transferring funds under pressure. When in doubt, users should stop and verify through official sources.

This warning comes as Binance Australia faces its own legal challenges. In December 2024, the Australian Securities and Investments Commission (ASIC) initiated legal proceedings against Binance Australia Derivatives. The regulator accused the platform of misclassifying retail investors and denying them essential consumer protections.

The rise in crypto scams reflects broader concerns in Australia about digital fraud. Last month, the Australian Competition and Consumer Commission raised alarms about the potential impact of relaxed crypto regulations in the U.S. under President Donald Trump’s administration.

ACCC Chair Gina Cass-Gottlieb warned that easing crypto regulation could lead to “horror scenarios” for investors. These concerns were backed by the ACCC’s annual scam report, which revealed Australians lost over $1.3 billion to investment scams in 2023, with crypto scams being a major contributor.

For those concerned about potential crypto scams, authorities recommend watching for warning signs. These include unsolicited contact about account breaches, pressure to act quickly, requests for sensitive information, unusual transfer requests, and demands for secrecy.

To stay safe, cryptocurrency users should verify requests using official contact details, avoid clicking links or downloading attachments from unknown sources, be wary of urgent requests, keep devices secure, and never share seed phrases or other sensitive information.

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