Australian authorities have issued warnings about a sophisticated scam in which fraudsters impersonate Binance via SMS, tricking users into transferring their crypto assets.

The Australian Federal Police (AFP) revealed that scammers use sender ID spoofing to make fraudulent messages appear in the same thread as legitimate Binance communications.

Victims are falsely informed of a security breach and urged to move their funds to a 'trust wallet,' which is controlled by the scammers.

The AFP has identified at least 130 potential victims and launched a campaign to warn them. Cybercrime officials explained that once funds are transferred to the scammers' wallets, they are swiftly moved across multiple accounts, making recovery difficult.

Similar scams have also targeted users of Coinbase and Gemini, exploiting pre-generated recovery phrases to seize control of wallets.

Binance Chief Security Officer Jimmy Su advised users to verify official communications through Binance's security tools and website.

The Australian government is taking steps to combat these scams, planning to launch an SMS Sender ID Register in late 2025. The initiative will require telecom providers to verify brand-name messages, reducing the risk of spoofing.

Investment scams remain a significant issue in Australia, with AU$382 million ($269 million) lost in the past year, nearly half of which was crypto-related.

Authorities continue to urge caution, warning users to be sceptical of unsolicited messages and requests for seed phrases or urgent transfers.

For more information on these topics, visit diplomacy.edu.