The post Binance Battles Address Poisoning Scams with New Algorithm appeared first on Coinpedia Fintech News
In response to the rising threat of address poisoning scams, Binance has launched a new algorithm to fight them. This smart solution detects fake addresses and warns users before they get scammed. Let’s see what it means and how it works.
Understanding the Scam
Using advanced security mechanisms, Binance has recognized millions of fake addresses across BNB Smart Chain and Ethereum, stopping real-time threats. The program timestamps malicious behavior by examining suspicious transactions and connecting them with possible victim addresses, revealing address-poisoning origins.
Binance believes that impersonating a valid Ethereum address like 0x19x30f…62657 can be done by using a similar-looking 0x19x30t…72657, which differs in the middle but retains the first and last few characters
Binance’s Initiative to Save Users
To mitigate the losses, Binance quickly registers faked addresses in a database with HashDit, a major Web3 security service. This collaboration helps other crypto service providers improve security and safeguard people from similar scams.
A recent address-poisoning scam cost an anonymous trader $68 million, emphasizing the need for preventative safeguards. The cash was recovered, demonstrating the need for strong security protocols in protecting user assets.
Where’s the Loophole?
This is a serious issue. Notably, address poisoning scams exploit the loopholes inherent in how most traders verify wallet addresses, often relying solely on the first and last digits. This makes it relatively easy for scammers to create deceptive addresses using vanity address generators, increasing the likelihood of successful fraudulent activity.
Binance’s initiative is a fresh move to deal with such challenges and enhances security for its users. Although the algorithm’s details are unknown, its ability to discover millions of poisoned addresses is impressive.
