TLDR
- Authorities in Australia have informed over 130 individuals about a sophisticated scam where perpetrators falsely claimed they were from Binance.
- Fraudsters used deceptive SMS and encrypted messages that seemed legitimate to trick victims into transferring money to fake 'trust wallets'.
- This operation, called 'Operation Firestorm', is a concerted global initiative to dismantle international criminal networks preying on Australians.
- Victims are strongly urged to immediately reach out to their bank or cryptocurrency exchange and report the incident to law enforcement using AFP-068 as the reference.
- In parallel, Binance Australia is cooperating with authorities while dealing with its own legal issues from regulators in Australia.
Australian federal bodies have started a campaign to inform the public. In a proactive measure against digital scams, Australian authorities have contacted more than 130 potential victims about a scam mimicking Binance, the world's leading crypto exchange.
Partnering with the Australian Federal Police-led Joint Policing Cybercrime Coordination Centre, the National Anti-Scam Centre sent out communications on March 20, 2025, to alert those potentially targeted. Victims were identified through encrypted messaging platforms.
The scam cleverly replicates traditional financial deception tactics. Victims receive fraudulent messages via SMS or encrypted chat apps claiming their crypto account with Binance has been compromised.
Scammers' Modus Operandi: The Trust Wallet Deception
What makes this scam particularly deceitful is the inclusion of fake verification codes within legit-looking messages from Binance, making it hard to detect.
These fraudulent communications provide a support number and instruct victims to secure their accounts by transferring crypto to a supposed 'trust wallet', which is actually controlled by scammers.
Uncovered through 'Operation Firestorm', this global effort, started in 2024, targets foreign criminal rings defrauding Australians via scams including crypto and investment frauds.
According to AFP Commander Cybercrime Ops Graeme Marshall, retrieving stolen funds is challenging. Once redirected to scam-operated wallets, funds are quickly shifted through complicated laundering channels, hindering asset recovery.
Commander Marshall highlighted cooperative efforts with NASC to identify victims swiftly and provide guidance on securing crypto assets. Alerts received from NASC should be regarded with utmost seriousness.
Authorities instruct anyone transferring cryptocurrency to a fake 'trust wallet' to report it promptly to their bank or crypto exchange first, then to police using ReportCyber with AFP-068.
Australian Competition & Consumer Commission Deputy Chair Catriona Lowe discussed the rising threat of impostor scams. Lowe emphasized their cunning use of false legitimacy to scam unsuspecting individuals.
She urged all Australians She advised verifying any communication by directly contacting companies using details from their official websites or applications.
Binance's Chief Security Officer Jimmy Su assured that protecting user interests is paramount. Su noted scammers often impersonate trusted platforms, manipulating sender details to create urgency.
Su advised users to utilize Binance Verify to confirm authenticity of communications, warning against sharing confidential information like seed phrases or transferring funds without verification.
As Binance Australia faces legal battles, the situation is further complicated. In December 2024, ASIC began proceedings against Binance Australia Derivatives, alleging improper classification and consumer protection oversight.
The surge in crypto scams highlights wider worries about online fraud. in Australia ACC Commissioner raised alarms over potential consequences of lax crypto regulations in the U.S. under the prevailing administration.
ACC Chair Gina Cass-Gottlieb forewarned of dire scenarios for investors due to loose regulations, supported by data that Australians lost over $1.3 billion to scams in 2023, with crypto scams being significant.
To guard against crypto scams, authorities urge vigilance for warning signs like unsolicited messages, urgency, secrecy demands, and transfer anomalies.
Users should validate requests with official channels, avoid dubious links and downloads, remain cautious of urgent prompts, secure devices, and never disclose sensitive details.
