We all know that scams in the world of cryptology have always existed, from Ponzi schemes to fraudulent tokens. All of these schemes have found ways to trick and entice the unwary into taking over their monetary funds. This not only happens in cryptoverse, it also happens in investment markets such as Forex and many more. Different companies and firms have joined forces to fight against such scams, and Binance is one of them, developing Binance Sentry.
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What is Binance Sentry and how does it work?
Binance explains, in a recent blog post, that Binance Sentry was established in 2018 to complement its existing security infrastructure. Basically, it is an internal risk research unit that is structured within the Binance security team, the largest exchange in the world.
Binance Sentry conducts investigations related to the identification and recovery of stolen assets, facilitating them. Thus, they seek to alert users to scams and fraudulent activities.
They developed it based on the experience and knowledge of the members belonging to the platform’s security, and they say that „this team of professionals uses both Blockchain and open source analysis to better understand the crypto threat landscape and the threats that we, as a community, face together.
In addition, the research unit has partnered with other analysis service providers, law enforcement agencies and various entities to help identify threats. This is all in the interest of strengthening its security and investigative techniques for monitoring malicious activity.
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What are the most common scams?
The most common scams that run through cryptoverse are fraudulent „investment schemes“ that promise to multiply initial funds in cryptomonies easily and quickly. Sounds too good to be true, right?
Many of these „schemes“ not only trade in Iq Option or any other crypto, but are also present in investments with Fiat currencies, such as Forex.
These scams have been exposed multiple times by the media. However, people who are not so experienced in the investment world and tend to be „innocent“, in a way, keep falling for it. These scams are mainly aimed at this audience, the novices. This is why Binance Sentry was born, to protect people.
For example, the Organized Crime and Corruption Reporting Project („OCCRP“) has published a series of investigations into one such „investment“ network operating from a call center in Kiev.
Binance talks about the strategies of the fraudulent networks
Of course, these schemes usually operate under different names, having branches in various parts of the world in order to go unnoticed. They can also operate with different currencies depending on the branch, one can be managed in euros, for example, and another in cryptom currencies.
Regulatory bodies such as the Financial Conduct Authority (FCA) in the United Kingdom or the Commissione Nazionale per le Società e la Borsa (CONSOB) in Italy have illustrated how fraudsters set up businesses with multiple identities.
Sometimes they even use phantom regulatory authorities and bogus consumer organisations. They seek to give legitimacy to their schemes at all costs, as well as to reassure (or intimidate) investors who are thinking of giving them their funds.
Binance develops how these networks operate in its article, being investigated by Binance Sentry:
„Among the multiple networks Binance Sentry has recently examined, we have also seen the use of related ancillary services. These include marketing teams and law firms, human resource teams and project rating sites. Their goal is to cultivate credibility and continue to support the activities of these networks, many of which are referred to as so-called legitimate operations.
In addition, the victims of these scams are often located around the world, and the fact that jurisdictions change depending on