Binance Promises to Safeguard Web3 Firms

Binance safeguards Web3 firms by collaborating with law enforcement agencies

The world's largest cryptocurrency exchange by transaction volume, Binance, has revealed its intentions to increase collaboration between Web3 firms and law enforcement authorities to boost security in the sector. Binance safeguards Web3 firms, according to Jarek Jakubcek, Head of Law Enforcement Training, to build a safe blockchain ecosystem for all users.

To combat and prevent financial scams in the cryptocurrency industry, Binance is starting a global anti-scam campaign with law enforcement organizations. According to the exchange, the vulnerability of cryptocurrencies to scams is due to the ease with which consumers can be persuaded into willingly disclosing critical information, such as private wallet key information, to the incorrect party. The exchange also mentioned awareness and education as important elements in preventing such scams.

Raising awareness of these techniques and how to avoid them is essential since scammers use sophisticated techniques like social engineering to deceive people into providing personal information that could result in the loss of their possessions. In cooperation with the department policy, Binance ran the program's initial test phase in Hong Kong.

To supplement a warning message sent to users before they withdraw money or make transactions, the exchange used law enforcement resources. It gives services for locating and reporting con artists and alerts users to probable fraud. About 20% of users, according to Binance, either reconsidered transactions after seeing the message or decided to research further before conducting them in the first month following the program's launch.

The exchange stated that it will expand the program's reach to more jurisdictions in the upcoming months and that it is trying to build partnerships with regional law enforcement and government organizations to secure the required funding. The exchange declared it will keep working with law enforcement organizations and offer the required assistance and instruction to assist in preventing crimes and fraud involving cryptocurrencies. The exchange has implemented several crime prevention and reporting programs, the most recent of which is the anti-scam campaign. These programs also feature a portal where law enforcement agencies can submit case requests.

The exchange recently participated in conferences and seminars held by the Hong Kong Police Force about combating cybercrime through its training and education programs in Hong Kong, and it plans to replicate that in other nations. The crypto exchange has already launched a Global Law Enforcement Training Program and general operational law enforcement assistance as part of its anti-spam activities. In a report last week, Chainalysis, a blockchain data analytics company, said that in 2022, revenue from cryptocurrency scams would decline by 46%. Senators from the United States are presently looking into "possible criminal business activities" at Binance and the platform it is linked with, Binance US, a different organization.