Binance Establishes Cybersecurity Alliance to Prevent Fraudulent Activity

Aug 28, 2020 at 11:30 // News
Coin Idol
Cryptocurrency fraudsters should be battled

After the news that fraudsters use Binance to launder stolen cryptocurrency funds, the exchange decided to take action to stop such activity. They have established a strong cybersecurity alliance.

The world’s largest digital currency exchange, in terms of trading volume, has partnered with a data privacy firm Oasis Labs to roll out the CryptoSafe Alliance platform, to develop preventative measures to avoid hacks against cryptocurrency businesses, combat and analyze cryptocurrency-related scams.

Improving standards for the crypto industry

The platform will offer proactive real-time fraud analysis for all participants contributing to the alliance. In case of any kind of attack, the platform will help to provide post-mortem analyses to fix flows and track down hackers. Besides, it will provide a framework for training members on how to avoid such hacks and scams in the future. 

Hence, it will be easier to prevent digital currency hacks, money laundering and other sorts of thefts associated with Bitcoin. This might help to reinforce and improve the standard for the entire cryptocurrency sector.

The alliance platform will maintain the ‘blacklist’ of member-submitted electronic addresses, and when these addresses discovered to have engaged in any illicit activity like scam, extortion, sex, drug trading, money laundering, they will be automatically blacklisted. The members will use these blacklisted addresses in their network services to secure and protect their customers.

Protecting the community

As CoinIdol reported recently, cybercriminals have been using Ryuk ransomware to steal digital currencies worth over $61 million, and then laundering it through Binance. This made the exchange strengthen its security effort to protect its customers as well as the community in general.

The CryptoSafe Alliance will become yet just another initiative aimed at protecting the cryptocurrency industry from the rising number of scams and hacks. During these complicated times of the COVID-19 pandemic and lockdown which have affected all industries, volunteers from various fields joined their forces to protect the most vulnerable industries.

2020 has seen the creation of several cybersecurity associations such as COVID-19 Cyber Threat Intelligence League and the Cyber Volunteers 19. Mostly, they target helping the healthcare sector as it is one of the most vulnerable and attacked one during the pandemic.  

Giant technology companies including Google, Apple, and others have also joined the battle by improving their security measures to protect their users from falling into the hands of the scammers. The tech giants are now blocking ransomware, cryptojackers, malevolent ads and phishing emails.

However, the process of combating malicious activities is a never-ending endeavour, and exchanges continue to develop, strengthen and upgrade their networks to prevent cyberattacks that normally causes huge losses to their users and the exchanges at large.

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