Eight Control Levels: Binance Explains How its Prevents Users’ Losses in 2024

Artificial Intelligence (AI) continues to demonstrate how powerful it can be. Large-scale platforms like Binance are currently employing AI for fraud detection. The platform uses a hybrid approach that combines artificial intelligence (AI) and manual reviews to monitor transactions in real-time, 24/7.

Binance shows that a blend of AI and human oversight can help identify and mitigate even complex or nuanced fraudulent activities. This approach boosts the platform’s efficiency in handling potential threats and builds user trust by showing that their assets are well protected.

A large chunk of the prevented losses ($1.1 billion or 45%) occurred at the crypto withdrawal stage, where scams are most prevalent. Binance’s internal risk engine is particularly effective in flagging and stopping suspicious transactions during this critical phase. The focus on withdrawals as a high-risk area is strategic, given that this is often the final step where funds are moved out of the platform. By strengthening monitoring at this stage, Binance effectively cuts off a key exit route for scammers, thereby protecting users’ assets.

Binance’s risk control measures are structured across eight levels, which vary depending on the severity of the detected risk. These measures include everything from pop-up notifications to more intensive interventions like cooldown features and wake-up calls. Additionally, the platform offers multiple appeal channels to assist users who have been flagged as at risk.

The multi-layered approach ensures that security measures are proportionate to the risk, balancing user experience with safety. This strategy minimizes false positives (which could frustrate users) while maximizing the protection offered to those at genuine risk. The appeal channels further demonstrate Binance’s commitment to user-centric solutions, allowing users to resolve issues efficiently.

Binance also stresses the importance of user vigilance in maintaining security. While the platform has implemented extensive protective measures, it encourages users to stay informed and practice strong security habits to safeguard their assets.

In addition to preventing scams, Binance has recovered over $73 million in misplaced or lost funds for external parties as of July 31, 2024. The company remains committed to innovating and enhancing its security measures to ensure a safe environment for all crypto users.

Binance seeks to establish itself as a proactive and user-focused platform, continuously innovating to protect its users from the ever-evolving threats in the cryptocurrency space. Through advanced technologies, strategic focus areas, and a balanced approach to security, Binance has managed to prevent significant user losses, setting a high standard for safety and risk management in the industry. The emphasis on user responsibility further strengthens the security ecosystem, making it a collaborative effort between the platform and its users.