Binance Aus ramping up measures to protect vulnerable users, says CEO
The general type of people Binance Australia has flagged as vulnerable users are the elderly, people that live in remote areas or those with disabilities.
Binance Australia is tightening up its onboarding process for new users as part of a push to protect users it has flagged as most vulnerable to financial crypto crime.
The new measures were mentioned in Binance Australia’s June quarter Economic, Social, and Governance (ESG) report on Monday, which noted that the exchange was working on a “stringent and user-focused onboarding experience” aimed at groups with a higher occurrence of financial crime.
Speaking with Cointelegraph, Leigh Travers, CEO of Binance Aus, and Zachary Lu from the exchange’s Financial Crime, Risk and Compliance unit, noted the company has been actively working on ways to protect “vulnerable users,” which starts from the onboarding process.
“From the whole financial crime risk management perspective, we are really looking at it from end to end and also from a whole life circle’s perspective,” said Lu:
“We are looking at three main areas: onboarding, ongoing and at the end of the life cycle [the point of time in which someone is scammed].”
Lu outlined that the general type of people Binance has flagged as vulnerable users are the elderly, people that live in remote areas or those with disabilities. Such conclusions were the result of working with various government and research agencies focused on financial crime, he added.
The duo emphasized that the company is paying a particular focus to investment scams, in which criminals promise inordinate returns on investments to dupe people into sending them money.
This type of scam has cost Australians millions worth of crypto, with a recent report from Scamwatch estimating that $25 million was lost in the first half of 2021 due to bogus investment schemes.
“There are 500 different scams, but investment scams are always on the top of it. So this is not exclusive to crypto scams to be honest, but investment scams overall ranked number one for a long, long time,” Lu noted.
To determine the scope of a new user’s crypto knowledge and to ascertain whether they have been guided by a bad actor to sign up under false pretenses, the firm recently rolled out a Know Your Customer- (KYC)-focused quiz that enables them to flag any potentially suspicious activity:
“So in terms of the data there, it’s only recently been implemented. So we don’t have sort of the analysis of how that’s how much that is going to stop. But, this user group was multiple times more likely to fall victim to these types of scams.”