Binance says AI security systems prevented $10.5 billion in user losses from crypto scams, phishing

Binance claims its AI security system has collectively helped save millions of users $10.53 billion in potential losses from scams between Q1 2025 and Q2 2025. 

According to a blog on Monday, the world’s largest crypto exchange has rolled out about two dozen AI-powered security features to help protect users from crypto scams. 

“Computer vision is used to detect fake payment proofs, while real-time language analysis helps surface scam patterns in P2P transactions. AI-driven decisioning now powers 57% of fraud controls, contributing to a 60–70% reduction in card fraud rates compared to industry benchmarks,” Binance wrote. 

“On the identity verification front, Binance’s KYC systems continue to evolve to counter increasingly sophisticated deepfakes and synthetic identities, delivering up to 100x gains in operational efficiency compared to traditional manual processes without AI,” the exchange continued. 

In Q1 2026 alone, Binance claims to have safeguarded $1.98 billion in funds protected from 22.9 million scam and phishing attempts. The exchange has also helped recover $12.8 million worth of funds from 48,000 cases.

The move comes as AI is increasingly deployed on both sides of the security scene, with bad actors turning to generative tech to run sophisticated fraud schemes and to deploy malicious code. Security experts are also utilizing AI to screen smart contracts and detect anomalies. 

JPMorgan, for example, estimated last year that its AI security systems helped prevent an estimated $1.5 billion in fraud losses.

Binance Research previously estimated that AI “is currently 2x better at exploitation than detection,” and that “AI-enabled scams are 4.5x more profitable than traditional ones.”

In addition to upping its software security and fraud detection capabilities, Binance recently rolled out a withdrawal lockdown feature in a bid to mitigate the risk of so-called wrench attacks. CertiK recently reported that crypto-motivated physical assaults are on pace this year to surpass the record number of attacks seen in 2025. 

Binance’s surveillance and compliance systems have been scrutinized in recent months following media reports that the exchange fired several employees in retaliation for flagging transfers to sanctioned Iran-linked entities. Binance has denied the allegations and told The Block it actively cooperates with U.S. regulatory and compliance agencies.

In Monday’s blog, Binance said it had confiscated $131 million in illicit funds and has processed more than 71,000 formal law enforcement requests. Binance works closely with Tether and Tron as part of the T3 security unit, which recently froze a record $344 million in USDT that has since been connected to Iranian entities. 

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