Binance has issued a warning about a growing wave of AI-powered scams targeting South African users, particularly through face attacks and deepfake fraud. The world’s largest cryptocurrency exchange by trading volume says cybercriminals now use advanced artificial intelligence tools to create convincing fake identities and bypass security systems.
According to Samukele Mkhize, Binance South Africa’s head of compliance, over 60% of organisations in the country have reported an increase in financial crimes linked to AI—surpassing global averages. These include facial recognition attacks, deepfakes, and cloned voice scams that exploit gaps in local cybersecurity awareness.
“South Africa’s rapid digital adoption, paired with weak security infrastructure, makes it a ripe target for such advanced fraud,” said Mkhize. Face attacks, which involve the use of fake images or 3D models to deceive facial recognition systems, have become particularly concerning for crypto platforms that rely on biometric KYC verification.
Locally understood as “RICA” due to South Africa’s Regulation of Interception of Communications Act, KYC checks on exchanges are now a prime target. Criminals harvest facial data from social media, video calls, or stolen ID documents and use AI to generate deepfake visuals that trick verification systems.
Also read: South Africans Are Warned of Telegram Investment Scams
Binance Responds with Enhanced Security and Global Partnerships
To address this threat, Binance has deployed enhanced fraud detection tools, liveness checks, and multi-layered authentication. Mkhize emphasized that these security upgrades are part of ongoing efforts to adapt KYC systems to evolving criminal tactics.
“Facial recognition integrity is now essential for protecting users in the crypto space,” he said.
Binance has also stepped up its user protection efforts through education and advanced biometric systems. It advises users to enable two-factor authentication (2FA) and verify any platform communication through official channels.
In 2024, Binance’s internal AI tools helped recover $88 million (about R1.6 billion) in stolen crypto assets. Mkhize noted that early reporting plays a critical role in increasing the chances of recovery. Users are advised to report incidents via Binance’s in-app support, share transaction details, and inform both local authorities and financial regulators.
“If funds are moved off-platform before Binance can intervene, the company still works with other exchanges and law enforcement to track and recover assets,” said Mkhize.
Further bolstering user protection, Binance highlighted the role of its Secure Asset Fund for Users (SAFU), an emergency reserve established in 2018. A portion of trading fees is allocated to SAFU to cover extreme cases of user loss.
On the law enforcement front, Binance is working closely with South African police and global regulators. The exchange has responded to nearly 60,000 law enforcement requests annually, most within 72 hours. It also hosted over 70 anti-cybercrime training sessions last year, including specialized programs for South African agencies.
“These collaborations strengthen the fight against AI-driven fraud, money laundering, and cross-border cybercrime,” Mkhize concluded.
Binance continues to position itself at the forefront of crypto security by investing in compliance, technology, and public education.
Source: MyBroadband
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