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Jimmy Aki
Author
Jimmy Aki
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Why Trust Cryptonews
On Tuesday, the Cyprus Police cybercrime division warned of a surge in SMS fraud targeting crypto investors, as reported by the Cyprus Mail.
The advisory revealed that scammers are impersonating officials from Binance—the largest crypto exchange globally—to trick users into divulging their login credentials.
Once obtained, these details allow the fraudsters to access accounts and siphon off funds.
Cyprus Police Urges Investors to Activate Two-Factor Authentication Against SMS Fraud
According to the report, the SMS fraud messages, often sent from what appear to be legitimate sources, claim that an unauthorized login attempt has been detected from a foreign country.
The recipients are then urged to call a phone number to resolve the issue, a step that ultimately compromises their login credentials.
Cyprus Police have confirmed that these messages are fraudulent and emphasized that people should not engage with them in any way.
Instead, the police advise the public to secure their accounts by activating two-factor authentication (2FA).
This added layer of security substantially reduces the risk of unauthorized access, ensuring that even if login details are compromised, a secondary verification step is required.
This warning comes as crypto scams have been making headlines globally and coincides with a recent report from Binance detailing how the exchange prevented over $2.4 billion in potential user losses during the first half of the year.
However, despite these efforts, the battle against fraud continues, with other platforms like Coinbase facing similar challenges.
From December 2024 to January 2025, Coinbase became a target of social engineering scams, leading to millions of dollars in customer losses.
Reports from blockchain investigator ZachXBT reveal that during this period, at least $65 million was stolen from Coinbase users.
Like the SMS fraud in Cyprus, these scams involved phishing emails, spoofed customer service calls, and fake websites mimicking Coinbase’s platform.
The scammers used these tactics to convince victims to transfer funds under the pretense of verifying account security.
Once the funds were sent, they were laundered using bridges and mixing services, making it nearly impossible for authorities to trace or recover the stolen money.
SMS fraud, in particular, is a form of phishing scam that leverages text messages to trick individuals, much like email phishing does.
In both cases, attackers create a sense of urgency, causing people to act impulsively and fall victim to fraud.
Phishing Scams Led to $2.36 Billion in Losses in 2024
The latest crypto scam involving SMS fraud in Cyprus is not an isolated incident.
According to a recent report by CertiK, a total loss of $2.36 billion across 760 on-chain security incidents was recorded in 2024. This marks a 31.61% increase compared to the previous year.
The firm’s report revealed that $1.05 billion was lost to phishing attacks, accounting for nearly half of the overall losses.
The rise in such scams, including SMS fraud, highlights the growing threat of cybercrime within the cryptocurrency space.
The second quarter of 2024 was particularly devastating, with losses reaching $433.7 million from 67 phishing attacks.
While phishing scams appear to be about human vulnerability and less about technology, the tides seem to be turning.
Reports have revealed that hackers have adopted a new strategy, posing as recruiters from well-known cryptocurrency firms.
These scammers lure victims by advertising high-paying roles, offering salaries ranging from $200,000 to $350,000. The attackers then engage in lengthy written interviews, building trust with the victim.
The final step involves asking the victim to record a video response using a platform called “Willo | Video Interviewing.”
When the victim encounters technical difficulties, they are guided to “fix” the problem by clearing their browser cache and restarting their Chrome browser.
This simple action, however, delivers malware that grants the attackers backdoor access to the victim’s device.
Once inside, the hackers can drain crypto wallets and cause further damage, making this scam especially dangerous for crypto users.
Proactive Protection in Crypto Security
As SMS fraud becomes more prevalent, investors must confront a reality where digital threats evolve rapidly.
Scammers exploit urgency and familiarity to manipulate both technical weaknesses and human error.
Implementing comprehensive security measures, including two-factor authentication, offers a straightforward yet effective shield.
Continuous education about new scam tactics empowers you to better protect your investments.
In this dynamic market, a proactive stance on security is your best safeguard against financial loss.
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