Australian Police: SMS Crypto Scams Have Already Harmed Citizens
The Australian Federal Police (AFP) recently uncovered a new scam targeting crypto asset users through text messages (SMS) that appeared to be official communications from well-known exchange platforms, such as Binance.
This scam successfully deceived dozens of people using a technique known as sender ID spoofing, in which perpetrators send SMS messages with a sender name that closely resembles Binance.
Because the message appears in the same thread as legitimate Binance notifications, many victims were misled.
Modus Operandi of the Scam
The content of the fraudulent messages typically claimed that the victim’s crypto account had been compromised and instructed them to create a new wallet for “security” purposes.
In the process, victims were asked to transfer their crypto assets to a new wallet, which turned out to be controlled by the scammer.
The message also included fake verification codes and a customer service number. If contacted, the victim would be directed to move their assets to a trust wallet, which was actually used by the scammers to steal the funds.
AFP’s Swift Action
As an immediate response, the AFP identified more than 130 individuals who were potentially targeted and contacted them via email and SMS.
However, investigations showed that the victims’ funds had already been moved to several other wallets, making it extremely difficult to trace or recover them.
The AFP noted that this pattern of fraud is similar to previous cases where scammers sent fake emails impersonating other exchange platforms, such as Coinbase and Gemini, using the same method.
Warnings and Preventive Measures
The AFP urges the public to be more alert to the common signs of scams like this. Typically, the scammer sends a message that appears to come from Binance, claiming the recipient’s account has been hacked.
They then create urgency for the victim to take immediate action, such as creating a new wallet or securing their assets.
At this stage, the scammer will ask for the victim’s seed phrase or instruct them to transfer assets to a wallet that actually belongs to the scammer.
In response to the growing number of such cases, the Australian government has developed an SMS Sender ID Register, requiring companies to register their official sender names.
This initiative is expected to help identify fake messages more quickly. The system is planned to go live by the end of 2025, with a trial version already in place as an early prevention effort.
Financial Losses Due to the Scam
According to AFP’s report, Australians lost a total of AUD 382 million—equivalent to IDR 3.9 trillion—to investment scams over the past 12 months. Around 47% of that amount was linked to scams involving crypto assets.
With the rise in such scams, it is increasingly important for the public to stay vigilant and verify any communication they receive, especially those involving sensitive information or requests to transfer funds.
