⚡️Binance CEO Richard Teng has reported a new type of scam that aims to steal users’ cryptocurrencies. The scheme, known as the Share-Seed-Phrase scam, is becoming increasingly common.
Often victims act impulsively without authenticating notifications, according to the Binance blog. When the scam is uncovered, it is no longer possible to recover the funds.
A new scam is on the rise. The “share-seed-phrase” scam tricks users into sending funds to “safe” wallets controlled by scammers.
Stay vigilant and never share your private information!
— Richard Teng (@_RichardTeng) February 18, 2025
How the fraudulent scheme works:
- Fake notifications: Scammers send fake wallet hacking notifications, suggesting users “protect” their funds.
- Cid Phrase Provisioning: They provide a cid phrase from a wallet that is under their control.
- Impulsive actions: Often victims act impulsively without verifying the authenticity of the notifications, resulting in loss of funds.
In addition, Teng emphasized that such fraudulent schemes can take many forms. For example, attackers may pretend to be customer service representatives, offering assistance in restoring access to an account. They may use social media, email or even phone calls to carry out their scams.
🔥 Recommendations from Binance:
- Never hand over cid-phrases: Binance reminds that the exchange never asks users for private keys or cid-phrases.
- Verify the source: Users should always verify the source of information and confirm any emergency requests through Binance’s official channels.
Earlier, analysts from Kaspersky Lab discovered a similar scheme. As part of this fraudulent scheme, attackers leave wallet addresses and cid phrases in YouTube comments.
It’s important to remember that no legitimate cryptocurrency platform, including Binance, will ever ask users for their cid-phrases or private keys. Any such requests should raise immediate suspicion.
Tips for protecting cryptocurrencies:
To protect their funds, users should always use two-factor authentication and avoid storing large amounts of cryptocurrencies on exchanges. It is best to transfer assets to cold wallets that are not connected to the internet and therefore less vulnerable to cyberattacks.
