Binance Utilises AI to Combat Fraud

In 2024, Binance thwarted the theft of over $2.4 billion in user funds. The incidents affected 1.2 million of the exchange’s clients, as stated in the company’s blog.

“This achievement is the result of Binance’s comprehensive risk management measures, which help effectively detect and flag suspicious transactions on the platform,” the report stated.

The exchange’s monitoring system is based on a hybrid mechanism combining artificial intelligence and manual checks. The company noted that it tracks suspicious activities in real-time, enabling measures to protect users.

The system covers various areas such as P2P trading, payments, withdrawals, and others. Binance highlighted that suspicious transactions are most frequently flagged during the cryptocurrency withdrawal stage—over $1.1 billion or about 45% of prevented losses are related to this area.

In addition to monitoring and threat detection, Binance employs a range of tools to protect users from crypto fraud.

Earlier in the second quarter, the MistTrack service by SlowMist received 467 reports of digital asset thefts. Funds from 18 victims amounting to $22.66 million were successfully frozen.