Richard Teng Warns of New Scam: Impersonating Phone Calls to Steal Accounts

Richard Teng, CEO of Binance, addressed the growing concerns about security on the social media platform X on August 26, warning users about phishing calls designed to compromise accounts. Teng stated: Ring, ring! It could be a scam. We have just discovered a new scam tactic: a phone call pretending to be support asking you to change your API. Remember that we will never ask you to provide your password or login information over the phone. Always stay vigilant. His comments came just a few days after Binance published a blog post on August 22 titled "Ring-Ring, This is a Scam – Beware of Fake Support Calls Targeting Your API," which detailed the mechanics of the scam and the steps traders can take to protect themselves. The blog explained how attackers impersonate customer service representatives, use spoofed phone numbers, and urgent language to prompt users to change their (API) application programming interface settings. By granting broader permissions, especially for withdrawals, victims inadvertently allow criminals direct access to their accounts. Binance emphasized that these modifications appear to be legitimate as they originate from the victim's own device, making them difficult to detect through automated checks. Reports on social media indicate that dozens of users have lost amounts ranging from hundreds to thousands of USDT, with incidents coinciding with a period of active trading at the end of July, when attention was more focused on market opportunities rather than security. To respond, Binance's risk management teams are monitoring suspicious call activity and blocking malicious networks, while affirming that they never send any legitimate security guidance via unsolicited phone calls. The company is urging customers to enhance their defenses through two-factor authentication, passwords, API key restrictions, and daily transaction history monitoring. While critics emphasize the vulnerabilities exposed by these scams, supporters of digital assets argue that with proper education and user vigilance, the cryptocurrency ecosystem can maintain resilience. They assert that raising awareness, combined with Binance's ongoing security improvements, is key to effectively mitigating such phishing attacks.