Binance prevents more than $129 million from being lost to scams in 2024 through AI and ML

Cryptocurrency exchange giant Binance reportedly prevented criminals from losing more than $129 million 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 digital asset security from reactive measures to proactive defense strategies .

Anti-scam initiative

According to the reportOn average, the company processed around 80 successful fund recoveries monthly, totaling approximately $9 million in stolen funds returned to victims in 2024. Additionally, it revealed that it made more than 30,000 phone calls to warn potential targets about possible scams, with at least 15,000 alerts issued daily to platform users.

The initiative’s efforts resulted in no less than 47,000 malicious addresses being blacklisted and, as of November, more than $129 million in annual funds were 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 surveillance and human-centric support. In it, machine learning algorithms analyze complex transaction patterns in real time, identifying potential criminal activity at ultra-fast speeds. It also employs AI-based behavioral profiling to distinguish between legitimate user activity and potential illegal enterprises.

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

Its Anti-Scam Refund Initiative operates through four pillars: proactive protection, 24-hour security mechanisms, rapid response recovery, and silent victim support. The one-day safety net allows users a cooling-off period for suspicious transactions, with funds transferred to flagged accounts and frozen to provide an opportunity for investigations and possible interventions.

Binance’s Victories Over Cryptocurrency 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 Delhi Police dismantle 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 unravel a scheme in which user funds worth $47.6 million were stolen from a gaming platform in online 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 from potential fraudsters in the first half of 2024. About $1.1 billion of this was attributed to suspected criminal withdrawals, and others 73 million dollars previously frozen due to external causes. tricks.