Binance prevents over $129 million lost to scams by 2024 using AI and ML

Cryptocurrency exchange giant Binance prevented more than $129 million from being lost to criminals in 2024.

In its Anti-Scam Refund Initiative year-end report, the company described how it deployed cutting-edge artificial intelligence (AI) and machine learning (ML) technologies to transform the security of digital assets reactive measures to proactive defense strategies.

Anti-Scam Initiative

According to the report, on average, the company processed about 80 successful fund recoveries per month, totaling about $9 million in stolen funds returned to victims by 2024. It also revealed that it making over 30,000 phone calls to warn potential targets of potential scams. , with at least 15,000 daily alerts issued to platform users.

The initiative’s efforts resulted in no fewer than 47,000 malicious addresses being blacklisted and, as of November, more than $129 million in annual funds prevented from being scammed.

Key to Binance’s approach to preventing bad actors from stealing from its user base is a system that combines technological monitoring and human-centric support. In it, machine learning algorithms analyze complex transaction patterns in real time, identifying potential criminal activity at super-fast speeds. It also uses AI-based behavioral profiling to distinguish between legitimate user activity and potentially illegal businesses.

The company reported that it developed more than 50 specialized models and implemented 14 major updates to overcome the increasingly sophisticated tactics of fraudsters.

Its anti-fraud refund initiative works through four pillars: proactive protection, 24-hour security mechanisms, fast response recovery and silent victim support. The one-day safety net allows users a cooling-off period for suspicious transactions, with funds moved to frozen marked accounts to provide an opportunity for investigations and possible interventions.

Binance wins over Crypto Thieves

Since the beginning of the year, CryptoPotato has reported several incidents where Binance’s intervention helped cryptocurrency users recover stolen funds. For example, in October, the company helped the Delhi Police bust a digital asset scam ring in the city and recover up to 100,000 USDT.

In early September, the exchange’s Financial Intelligence Unit (FIU) helped authorities in the same country bust a scheme in which user funds worth $47.6 million were stolen from ‘an online gaming platform and diverted to various digital wallets.

In August, the company announced that its risk management system had prevented more than $2.4 billion in losses to potential fraudsters in the first half of 2024. About $1.1 billion was attributed to suspected criminal withdrawals, with another $73 million previously frozen due to overseas. hacks

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