Binance claims to
have thwarted potential losses of over $2.4 billion In the first seven months of 2024, safeguarding more than 1.2
million users from scams and fraudulent activities.
In a statement the company released today (Tuesday),
the exchange said it prevented the potential billions of dollars worth of
losses from January to July 2024. The platform’s risk management reportedly
detected and blocked fraudulent activities that could have affected more than
1.2 million users.
Using AI to Detect Fraud
The leading exchange by trading volumes highlighted
its internal risk management platform that utilizes artificial intelligence
(AI) and manual review to monitor transactions in real time. This system
dynamically detects suspicious activities across its ecosystem.
The most significant threat detected by Binance’s
system occurred during the crypto withdrawal stage. In 2024 alone, the platform
flagged suspicious withdrawals totaling over $1.1 billion, representing
approximately 45% of the total potential losses prevented.
Binance’s approach to security is multilayered,
integrating numerous controls across its ecosystem to minimize risk exposure.
The system oversees various aspects of the platform, including peer-to-peer
(P2P) trading, payments, and crypto network withdrawals, ensuring that users
remain protected in every domain.
Real-time Monitoring
In addition to real-time monitoring, Binance employs a
broad array of tools to protect users from scams. These include customized
pop-up notifications, cooldown features, and wake-up calls. The platform also
offers various channels for users to appeal and resolve issues if they are
flagged as potentially at risk.
As of July 31, 2024, Binance had secured over $73
million in misplaced or lost funds for external parties. This achievement
underscores the platform’s ongoing efforts to create a safer environment for
all crypto users.
Expect ongoing updates as this story evolves.
This article was written by Jared Kirui at www.financemagnates.com.
