Why my face keeps appearing on crypto scams

I recently learned I can miraculously speak fluent Mandarin. German too.

I also learned I have multiple WhatsApp and LinkedIn accounts, not to mention a few Skype ones (for the handful of people who still use that).

As general manager of Binance Australia and New Zealand, I was stunned to learn we were supposedly giving away 100,000 Bitcoin (that's over $9 billion AUD) for our seventh anniversary.

The kicker? I apparently had messaged people with the offer and had no idea about it.

Since taking up my role at Binance, I've become the unwilling star of international phishing scams.

Using my name, profile picture, and a convincing message, scammers are creating fake profiles and targeting random people worldwide.

Anatomy of a scam

Posing as someone else, scammers use phoney profiles to interact with potential victims, attempting to win their trust by using bogus credentials.

Under the pretence of rewards, freebies, or investment opportunities, they ask victims to share personal information or assets. Once they get what they want, they vanish.

It seems every time I update my profile photo, a fresh batch of 'Ben Rose' duplicates pop up, leveraging Binance's anniversaries or other timely events to appear more convincing.

They're meticulous, observant, and they know exactly how to craft scams to make people believe them.

The common scam my name gets caught up in is through social messaging channels, such as WhatsApp group chats.

The setup includes three main players: the 'analyst' or a similar title (often posing as me), the 'cheerleaders', and the unsuspecting victims.

The 'analyst' kicks off the conversation with a proposition, while the 'cheerleaders' chime in to back up the claims, creating a false sense of community and credibility.

The 'cheerleaders' also manufacture a sense of urgency, such as claiming a certain 'offer' would soon end. This dynamic makes it easier for victims to fall for the scam.

The cost of scams

Last year alone, Australians reportedly lost $2.74 billion to cyber crime, with more than 600,000 scams being reported to numerous scam watch databases.

The main culprit? Investment scams.

Scammers are becoming increasingly sophisticated, leveraging AI to create more credible and alarmingly real scams.

Even the most digitally savvy individuals can fall victim. Last month, ASIC chairwoman Karen Chester admitted she, and several other executives, fell victim to a scammer when purchasing shoes in an online sale promoted through Instagram.

This year, a finance worker was tricked into paying out $25 million to scammers using deepfake technology to pose as the company's CFO in a video call.

This echoes a similar 2019 horror story, when the CEO of a British energy provider was duped into transferring $380,000 to a scammer digitally posing as his parent company's head.

New industry code of conduct

The Australian Government is saying enough is enough, announcing a code of conduct for banks, telcos, and social media platforms.

The code will fine companies and hold them liable for victim compensation if they do not meet their obligations to detect, prevent, and disrupt scam activity.

The industry is already responding, with Westpac and Optus rolling out a new security product that allows customers to receive Westpac-branded calls via their banking app to help beat financial scammers.

Hearing this from someone in the cryptocurrency industry might sound like a big whoop-de-doo because people often lump scams and crypto together.

However, crypto's blockchain technology maintains a public, accurate, and unchangeable history, making crypto one of the easiest financial assets to trace. Legitimate crypto exchanges will also support law enforcement investigations.

How to remain vigilant against scams

The simple truth is that society is always in a cat-and-mouse game when keeping scammers at bay. The impersonation of banks, CEOs, politicians, and public sector executives isn't new.

By dangling the bait of rapid returns, scammers tap into people's fear of missing out and a universal desire for financial success.

As the leading cryptocurrency exchange, we're not blind to the fact our industry is susceptible to scams. So, we try to get ahead of the problem.

We regularly post advice on how to spot the latest scams and actively acknowledge current ones.

We also give users the security tools they need to be safer, including a verification system that allows members of the public to check whether a source officially represents Binance

While the industry and government undoubtedly have an integral role, Aussies must also be vigilant. Always be a phisherman.

Be on alert; do not click suspicious links or emails; verify identities and information through official platforms; and report suspicious activity through proper channels. The Australian Government's Scamwatch provides important information about how to spot and report a scam. And remember, if it seems too good to be true, it probably is.

As business leaders, we have a responsibility to help educate our customers and employees on how to minimise the risk of getting caught in a phishing net. It's not just good ethics, but smart business.

By encouraging healthy scepticism and ensuring robust cyber security measures, we can ensure the only thing scammers are left phishing for is a new line of work.

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