Binance CEO Alerts of Rising “Share-Seed-Phrase” Scam in the Crypto World

Binance CEO Richard Teng warns of a growing “share-seed-phrase” fraud targeting cryptocurrency users. Scammers deceive victims by sending false warnings claiming to have hacked their wallets.

Summary

• CEO Richard Teng warns of a growing “share-seed-phrase” scam targeting cryptocurrency users.
• The scam involves false warnings claiming wallets have been hacked, urging victims to move their assets to a new wallet owned by the fraudster.
• The fraud exploits consumers’ emotions, causing panic and urgency to obey orders without scrutinizing their legitimacy.
• Teng advises skepticism and investigating the source of the alert. Binance never requests private keys or seed phrases, making such a request a red flag.
• Red flags include time pressure and the belief that delaying action may result in financial ruin.
• To verify an alert, check the source through Binance’s official channels and contact customer assistance.

Richard Teng, CEO of Binance, the world’s largest cryptocurrency exchange, has recently issued several warnings concerning the rise of cryptocurrency frauds. However, Richard Teng has warned of a new fraud that fools victims into sending their assets to the wrong hands, known as the “share-seed-phrase” scam. Here’s how this fraudster scammed the victims.

How does the Scam Work?

CEO Richard Teng claims that this fraud operates by sending consumers fictitious warnings that their wallets are under attack. To “guard” their finances, victims are advised to move their valuables to the fraudster’s new wallet.

Fraud is particularly effective since it plays on consumers’ emotions. Panic and hurry are valuable weapons for fraudsters. Victims are afraid of losing their valuables, therefore, they hurry to obey orders without examining their legitimacy.

Unfortunately, by the time they recognize what’s wrong, it’s too late to undo the damage.

How to Protect Yourself from Scams

So, how can you avoid slipping into this trap? Richard Teng gives some vital advice: begin with skepticism. Scammers frequently utilize fear and hurry to pressure their victims into taking quick action.

If you receive a notice indicating that your wallet has been hacked, pause. Draw a deep breath. Think before acting.

The first thing to investigate is the source. Binance, or any respectable site, will never request your private keys or seed phrase. No valid security warning would direct you to transmit funds to an unexpected wallet address. If you receive such a request, consider it an obvious red flag.

Some Red Flags to Keep in Mind

Scammers frequently exploit time pressure to force you to move quickly, making you believe that delaying action may result in financial ruin. This is yet another significant warning sign.

If you are skeptical about an alert, the easiest way to verify it is through Binance‘s official channels. Before taking any action, contact customer assistance to check that the warning is authentic.

In short, use caution, take your time, and double-check the source of any urgent request. By doing so, you may safeguard yourself and your money from the rising threat of cryptocurrency fraud.

Also Read: Hong Kong Recognizes More Than 30 Crypto Fraud Platforms With the Hashkey Brand

The Securities and Futures Commission (SFC) of Hong Kong has discovered 45 impersonators, including 33 more posing as HashKey, one of the city’s licensed cryptocurrency trading platforms. HashKey, the second exchange to receive a crypto license from the SFC, has denied any affiliation with the suspicious connections. The SFC has discovered at least 91 suspicious trading platforms and relations since November 2021. Hong Kong has declared its intention to become a regional digital asset center, competing with Singapore, which has issued at least 30 licenses to cryptocurrency participants…[Read More]

*Disclaimer*: We at Bitcoinleef.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.