Crypto scammers steal millions via SMS spoofing

A sophisticated text message scam targeting Australian cryptocurrency users has been uncovered by the Australian Federal Police (AFP), with over 130 potential victims identified.

The scam involves fraudsters impersonating Binance representatives, sending messages that appear in legitimate Binance chat threads, claiming that the user's crypto account has been breached and instructing them to set up a new wallet.

These messages are particularly deceptive because they use the same "sender ID" as legitimate Binance communications, making them seem authentic at first glance.

The scammers provide fake verification codes and a support phone number, which, when called, leads to instructions to transfer cryptocurrency to a "trust wallet" controlled by the scammer.

Once the funds are transferred, they are quickly moved through a network of wallets, making recovery nearly impossible, according to AFP Commander Graeme Marshall.

The AFP has launched Operation Firestorm to combat such scams, working closely with the National Anti-Scam Centre (NASC).

Red flags for this scam include unsolicited contact about an account breach, pressure to act quickly, and requests for a seed phrase.

Binance's Chief Security Officer, Jimmy Su, advises users to verify communications through official channels to avoid falling victim.

In response to these scams, the Australian government plans to introduce an SMS Sender ID Register by late 2025 to combat such fraudulent activities.

This initiative aims to ensure that messages sent under a brand name are verified and legitimate.

"Scammers often impersonate trusted platforms, exploiting certain telecom loopholes to manipulate sender names and phone numbers," Jimmy Su noted, highlighting the need for vigilance in verifying communications.

The AFP has emphasised the importance of swift action in identifying and supporting victims of these scams.