The Good Tech Companies - Binance's AI-Driven Crackdown on Crypto Scams: $9.1M Recovered, $129M Prevented

Episode Date: April 23, 2025

This story was originally published on HackerNoon at: https://hackernoon.com/binances-ai-driven-crackdown-on-crypto-scams-$91m-recovered-$129m-prevented. Binance has launched a full-scale initiative to combat digital scams. Check more stories related to tech-companies at: https://hackernoon.com/c/tech-companies. You can also check exclusive content about #binance, #digital-scams, #binance-scam-prevention, #combat-digital-scams, #ai-driven-kyc, #role-of-ai-in-cyber-security, #ai-to-prevent-scams, #good-company, and more. This story was written by: @manasvi. Learn more about this writer by checking @manasvi's about page, and for more stories, please visit hackernoon.com. Binance has launched a full-scale initiative to combat digital scams. The Anti-Scam Refund Initiative is more than just a refund program. It's a comprehensive, AI-powered defense system designed to prevent, detect, and recover.

This audio is presented by Hacker Noon, where anyone can learn anything about any technology. Binance's eye-driven crackdown on crypto scams, $9.1M recovered, $129M prevented, by Manasvi Arya. As cryptocurrency adoption surges, so too does the scale and sophistication of financial scams. In 2024, a staggering number of users found themselves targeted by phishing schemes, social engineering attacks, and fake investment platforms. Yet amid this rise in fraud, one exchange is pushing back with unprecedented intensity. Binance, the world's largest crypto exchange by trading volume, has launched a full-scale initiative to combat digital scams.

The Anti-Scam Refund Initiative, which ran throughout 2024, is more than just a refund program, it's a comprehensive, AI-powered defense system designed to prevent, detect, and recover from scams across the globe. Scammers present a growing threat in crypto. According to Binance, the global scam industry has evolved into a professionalized network, using psychological manipulation and sophisticated tools to deceive even the most cautious users. Scammers now operate like organized businesses, complete with customer support fronts, phishing

toolkits, and fake websites that promise lucrative returns. Binance CMO Rachel Conlin commented on the state of crypto cyber threats. The evolving nature of cyber threats in the crypto industry reinforces the need for exchanges and custodians to continuously strengthen their security frameworks. As threats continue to grow in sophistication, so must our defenses. Conlon continued by discussing the company's security commitment, at Binance, responsible growth has always meant putting users' safety first. In 2024, this commitment translated into hundreds of millions of dollars invested in compliance programs, surpassing significant spending in 2023.

Our security team works closely with global law enforcement to track and combat illicit activities, ensuring user assets remain protected. According to the 2025 crypto crime report from Chainalysis, in 2024 the value received by illicit cryptocurrency addresses has dropped to $40.9 billion, a notable decline from 2023. Even more reassuring, the percentage of crypto transactions linked to illicit activity fell to 0.14%, down from 0.61% in 2023. In these situations, we support the industry by tracing and freezing funds, if possible. Chainelysis estimates that crypto scams generated at least $9. 9 billion on chain in 2024, a number that may rise to $12.

4 billion once more illicit addresses are identified. If confirmed, this would mark the fourth consecutive year of scam revenue growth since 2021. Pig butchering scams and high-yield investment schemes are the biggest culprits. Pig butchering scams alone saw revenue jump nearly 40% year over year, with the number of deposits into such scams increasing by over 200%. The fraud ecosystem has expanded not just in size but in reach and tactics, targeting victims across continents with tailored messaging and emotional manipulation. Tech innovations have also made it easier for scammers to scale operations.

Platforms like Huion Guarantee provide services ranging from fake personacreation using generative AI to money laundering infrastructure, fueling a global scam economy. These developments make it increasingly difficult for individuals to protect themselves, and underline the need for platforms to take the lead in scam prevention. As Binance notes, everyone can be scammed, it's just a matter of finding the right method. From retirees to professionals, no demographic is safe from the evolving tactics of online fraudsters. That's why the digital asset exchange has stepped up its game with a multi-layered, always-on approach to protect its users. Recovering $9, 1 million and preventing $129 million of losses. The Binance Anti-Scam Refund Initiative represents a coordinated

effort across multiple departments to shield users from fraud. The initiative is built on four core pillars – proactive protection, a 24-hour safety net, rapid response recovery, and silent sufferer support. Under its proactive protection strategy, Binance blacklisted more than 47,000 malicious addresses in 2024 and issued over 15,000 targeted alerts to users daily. High-risk individuals, including the elderly and prior scam victims, received personalized warnings and interventions. More than 2,000 risk assessment forms were processed

every day to assess potential vulnerabilities. The 24-hour safety net gives users a critical buffer during suspicious activity. Funds transferred to flagged Binance accounts are automatically frozen for 24 hours, giving users time to report potential scams. During this period, the exchange's monitoring team investigates the recipient's activity, assesses the transaction risk, and contacts both parties if necessary. In 2024, Binance processed over 20,000 chats with high-risk users through this system, potentially stopping millions in losses.

When prevention fails, the rapid response recovery mechanism kicks in. This system uses eye-driven analysis to evaluate scam reports instantly. Suspected scammer accounts are frozen within seconds, followed by in-depth manual investigations. Binance's systems also monitor fund flows upstream and downstream to identify associated wallets and block additional losses. In addition to these pillars, the silent sufferer support system is designed to assist users who are too ashamed or traumatized to report scams. Binance proactively reaches out to these individuals, identified through transaction behavior, and

helps guide them through the reporting and recovery process. Altogether, these efforts yielded impressive results in 2024. Binance recovered $9, 1 million in stolen assets through 800 successful recoveries each month. Over $129 million in losses were prevented before the scams could fully execute. Morethin 30,000 phone calls were made to potential victims, offering guidance and warnings in real time. Binance also played a crucial role in helping global law enforcement, fromiting the Royal

Malaysia Police in recovering a $1.6 million kidnapping ransom toe assisting Dutch and Indian authorities in breaking up multi-million dollar scams, Binance's financial intelligence unit has proven to be a powerful ally in the fight against digital crime. Building trust through action, the results of Binance's anti-scam refund initiative show that user protection in crypto doesn't have to be reactive. It can be proactive, AI-powered, and deeply human. From real-time fund freezes to round-the-clock customer support, the exchange is setting a new standard for what safety should look like in the digital asset world.

As scams continue to rise in complexity, initiatives like these are essential not just for individual recovery but for the credibility and sustainability of the entire crypto ecosystem. With 47,000 malicious addresses flagged, tens of millions protected, and thousands of the entire crypto ecosystem. With 47,000 malicious addresses flagged, tens of millions protected, and thousands of lives potentially changed, Binance's work ease more than security, its service. In a year where scams nearly broke records, Binance responded with record-breaking safeguards. While not every case ends in recovery, the company's message to users is clear. You're not alone, and help is always available. Crypto security isn't just about tech, it's about trust.

And Binance IS determined to earn and maintain it. Tip This story was authored under Hacker Noon's business blogging program. Thank you for listening to this Hacker Noon story, read by Artificial Intelligence. Visit HackerNoon.com to read, write, learn and publish.