The Australian Federal Police (AFP) have issued a warning to over 130 residents regarding a deceptive new text message scam targeting cryptocurrency users. Scammers are now able to completely spoof sender IDs, making fraudulent messages appear as though they are coming from legitimate crypto platforms like Binance. This has heightened the risk of falling victim to sophisticated impersonation scams, where fraudsters send messages claiming an account breach and urging users to set up a new wallet.
According to the AFP, the messages look genuine at first glance by appearing in the same thread as legitimate Binance communications. This method of attack has made it exceedingly difficult for unsuspecting victims to recognize the deception. The AFP noted that the fraudulent messages often included fake verification codes and were categorized under the same Sender ID as real Binance texts.
In many instances, the scammers also provided a support phone number. When victims called this number, they received instructions to transfer their cryptocurrency into a so-called ‘trust wallet’—a tactic employed by the scammer to gain control of the victims’ funds. Once the funds are in this wallet, they are quickly moved through a network of wallets to make recovery nearly impossible.
This development follows a string of similar scams, where impersonation techniques have been used to target crypto users on platforms like Coinbase and Gemini. The AFP has reported that red flags for these scams include unsolicited messages about account issues, pressure for quick action, and requests for sensitive information such as recovery phrases.
Binance’s Chief Security Officer, Jimmy Su, emphasized the importance of verifying any communication claiming to be from legitimate sources. Users are advised to take precautions, such as confirming through official channels when in doubt. The AFP is conducting an email and text blitz to alert those at risk, given that the Australian crypto market has seen significant losses due to investment scams over the last year, with nearly half being related to crypto.
In response to the rise in such scams, the Australian government has announced plans for an SMS Sender ID Register aimed at curbing similar fraudulent activities. This register, set to launch by late 2025, will require telecom companies to validate messages sent under brand names, ensuring they correspond with legitimate sources. In the meantime, caution and vigilance are essential for protecting your cryptocurrency assets.
