Binance Australia to Protect Vulnerable Users From Scams

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Australian Binance to strengthen onboarding experience to protect the elderly, people living in remote areas, or having disabilities.

Binance Australia, a digital currency exchange registered with AUSTRAC, has decided to take additional steps to protect users who may be vulnerable to financial crimes.

According to Binance Australia’s June quarter Economic, Social, and Governance (ESG) report, the company aims to strengthen the “onboarding experience” to protect users who may be targeted by scammers.

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The company has worked with various financial crime-related governmental and research institutions to pinpoint the groups of people who may be most affected by financial crimes. The studies revealed that the most vulnerable users are the elderly, people living in remote areas, or having disabilities.

Binance Australia CEO Leigh Travers and Binance’s representative from Financial Crime, Risk and Compliance unit Zachary Lu have highlighted that the company is focusing on protecting users from investment scams. During these scams, customers are lured, to send various amounts of money to scammers in return, promising users unreasonable returns.

Zachary Lu noted that investment scams are an underlying problem in all financial institutions.

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.

According to data shared by the Australian Competition and Consumer Commission (ACCC), during the first half of 2021, Australians lost around $25 million in crypto from various “bogus investment schemes.”

Therefore, Binance Australia has launched a new know-your-customer (KYC) quiz. The questionnaire is designed to help the company to evaluate users’ crypto knowledge. Moreover, it will help to determine whether or not the users were guided to join crypto exchanges by malicious actors.

The company is planning to roll out strengthened identification requirements. Starting September 1st, all new users will be required to provide a copy of their driver’s license and its number. Previously, new users were able to upload this information after signing up.