A new Crypto scam targeting users is on the rise, tricking victims into transferring their digital assets to wallets controlled by fraudsters. Richard Teng, a key figure at Binance, has warned the community about the “share-seed-phrase” scam, which manipulates users into setting up wallets using seed phrases provided by scammers. Once users transfer funds into these seemingly “safe” wallets, the scammers drain them, leaving victims with devastating losses.
Binance emphasizes the importance of security and vigilance, reminding users to never share their seed phrases and to remain cautious when dealing with unsolicited messages or calls. Crypto wallets rely on seed phrases, which are randomly generated words that allow users to recover lost access to their funds. In this scam, instead of tricking users into revealing their own seed phrases, scammers provide them with a pre-set seed phrase for a wallet under their control.
The fraud unfolds in three key steps;The first step involves scammers impersonating Binance representatives and contacting users via SMS or phone calls. They falsely claim that the victim’s account has been compromised and urge them to transfer funds into a “secure wallet.” Next, victims receive a seed phrase via SMS or email, allegedly for a new “secure wallet.” This is a significant red flag, as legitimate platforms like Binance never send users seed phrases. Once the victim transfers crypto into the wallet set up using the scammer-provided seed phrase, the scammers instantly steal the funds, leaving no way for the victim to recover them.
How to Protect Yourself and Stay Secure in the Crypto Space
Security remains a top priority in the crypto space. Binance has outlined essential steps to help users stay protected and avoid falling victim to such scams. Binance will never request users to transfer funds for security reasons, contact users via unsolicited SMS, phone calls, emails, or social media messages directing them to unverified platforms. They also do not provide a seed phrase, request access to users’ private keys, or ask users to install third-party applications.
To safeguard your assets, it is crucial to verify communications using Binance’s official verification tools or by directly contacting customer support through their official website. Always generate and store your seed phrase securely offline and never share it with anyone. Access Binance services only through official websites and apps downloaded from trusted sources such as Google Play or the Apple App Store. If you encounter any suspicious messages or requests, report them to Binance immediately. Keeping contact details updated ensures that security notifications are received in real time.
Certain actions should always be avoided to maintain security. Avoid calling phone numbers from unsolicited messages and instead use Binance’s official support channels. Never disclose your seed phrase, private keys, or authentication codes to anyone. Remain cautious when receiving links or QR codes claiming to be from Binance, as scammers often create a sense of urgency to pressure victims into compliance. Finally, always double-check instructions before moving funds and ensure the recipient wallet is legitimate.
The “share-seed-phrase” scam is one of the latest tactics used by fraudsters to exploit crypto users. Binance urges all users to stay vigilant, verify all communications, and follow security best practices to safeguard their assets. The seed phrase is the key to accessing funds, and it should never be shared under any circumstances. Staying alert and adhering to best practices can help protect investments from these evolving threats in the crypto space.
