Share-Seed-Phrase Scams: A Binance Guide to Protecting Yourself Against a Rising Threat
Main Takeaways
There is a new type of scam that has been sweeping the crypto world recently: the share-seed-phrase scam.
This scam works by manipulating crypto users into sending the funds from their allegedly compromised wallets to “safe” wallets that are actually set up by scammers in advance.
If you have only five minutes today to learn about how to protect yourself against this scam, this is the guide you need to read.
At Binance, your and your assets’ security is our utmost priority. With the rising interest in and adoption of digital assets, a new scam targeting crypto users is on the rise, called the share-seed-phrase scam. The scammers work by impersonating crypto professionals to urge victims to import a new seed phrase to set up a wallet and transfer their assets into this wallet. Afterwards, the scammers proceed to drain the new wallet and leave without a trace.
Please take a moment to read the information below and remain vigilant to safeguard your funds and accounts.
How the Share-Seed-Phrase Scam Works
A crypto wallet's seed phrase, also known as a recovery phrase or mnemonic phrase, is a sequence of typically 12 to 24 randomly generated words that are used to generate and recover the private keys associated with the wallet. If the wallet owner forgets or loses the address or private key, the seed phrase can help restore the wallet and regain access to the funds therein.
Criminals might want to know your seed phrase to access the funds in your wallet. With the share-seed-phrase scam, however, the scenario is reversed: the criminals share with the victim the seed phrase of the wallet that they control, and then trick them into sending digital funds to this wallet. Here’s the typical sequence of steps that scammers posing as Binance representatives take to pull this scheme off.
Step 1: Fake SMS/Call
Scammers posing as Binance staff will send an SMS or call you, claiming that your account is compromised and urging you to transfer funds to a "secure wallet."
Step 2: Fake Wallet Setup
Scammers send a seed phrase via SMS or email, falsely claiming it’s for your new “secure wallet.” This is a clear red flag. Legitimate services will never ask you for your seed phrase or send one for you to use.
Step 3: Crypto Theft
Once you transfer crypto to the wallet not owned by you, the scammers who control it will immediately steal your funds.
What You Need to Know
Binance Will Never:
Request that you transfer funds out of your accounts for security purposes.
Contact you via unsolicited SMS, calls, emails or social network messages that direct you to unknown phone numbers, social network ids, software, or websites.
Generate a seed phrase for you, ask for access to your private keys, or send you a seed phrase via SMS or email.
Ask you to install any third-party software.
Stay Secure Together
Five Dos:
Verify Communications: Use Binance Verify or contact our official customer service channel.
Protect Your Seed Phrase: Create your seed phrase yourself and never share it with anyone. Store it securely in a private, offline location.
Use Official Channels: Access our services only via our official website or app from trusted sources like Google Play or the Apple App Store.
Report Suspicious Activity: Notify us immediately if you encounter any suspicious requests or transactions.
Enable Alerts: Keep your contact information up-to-date to receive transaction and security alerts promptly.
Five Don'ts:
Don’t Call Unverified Numbers: Avoid calling phone numbers provided in unsolicited messages. Always use the official numbers listed on our website.
Don’t Share Sensitive Information: Never share your seed phrase, private keys, or verification codes with anyone.
Don’t Trust Unsolicited Contact: Scammers often use urgency to pressure you into action. Take your time to verify the authenticity of SMS, calls, emails, or messages on social media.
Don’t Click Unknown Links or Download Unknown Software: Be wary of links or scanning QR codes in messages claiming to be from Binance.
Don’t Transfer Crypto to Unverified Wallets: Always double-check any instructions to move funds and ensure the wallet is legitimate.
A Shared Commitment to Security
Think of your crypto wallet as a high-security vault: even the strongest vault can be breached if you give the password to a thief. Stay alert and follow these guidelines to prevent scams and secure your assets. For more information, check the following resources:
If you have any questions or need assistance, please contact our customer support team. Thank you for your continued trust. Together, we can create a safer crypto community for everyone.