Binance News: Binance Says AI Security System Prevented Over $10 Billion in User Losses in One Year

Key Insights

• Binance AI security system prevented $10.58 billion in user losses in between 2025 and 2026
• The exchange system also blocked over 20 million phishing attempts
• This comes as AI plays an increasing role in crypto thefts and hacks

The world’s largest crypto exchange, Binance, has revealed it uses artificial intelligence (AI) to combat crypto fraud. In a blog post today, the exchange claimed it used AI to prevent $10.53 billion in potential fraud-related losses between Q1 2025 and Q1 2026.

According to Binance, using AI technology enabled it to protect over 5.4 million users during that period, despite the rise in crypto fraud.

Binance Expands AI Security Infrastructure

The Binance post highlighted the exchange’s integration of AI into its infrastructure. It described using the technology as a shield, noting that it has now launched over 24 AI initiatives and more than 100 models for the purpose.

According to the exchange, it now uses AI for 57% of its fraud controls, including tools like computer vision to detect fake receipts and real-time language analysis to identify scam patterns in P2P transactions.

It is also relying on AI for KYC and identity verification, reporting 100x gains in operational efficiency

Meanwhile, the exchange noted that it has also integrated a security framework with its AI agent, Binance AI Pro. Launched recently, the tool allows users to deploy a semi-automated trading assistant on the exchange.

However, Binance stated that there are frameworks in place to limit risks. These include segregating funds managed by AI agents from main user accounts and screening all third-party apps before installation.

Phishing Attacks Continue Rising Across Crypto

Interestingly, Binance disclosed that it prevented 22.9 million scams and phishing attempts in the first quarter of 2026 alone. While this has protected $1.98 billion in user funds, it also highlights the rise in phishing scams.

The blog post noted that the rise in scams is mostly due to AI, which has now made it easy for scam perpetrators to execute without any technical expertise. This, coupled with low transaction fees, means the barrier to entry for scammers is now very low.

As a result, there has been an increase in scams, while the success rate is also up, as evidenced. This contributed to the $17 billion in crypto-related fraud in 2025, as AI-driven scams with advanced models now achieve a success rate of up to 72%.

Interestingly, AI-enabled attacks are not only targeting system vulnerabilities. Some of them are also social engineering with AI now enabling phishing, deepfakes, voice cloning, and more complex impersonations.

However, Binance stated that it is actively combating them with 36,000 malicious addresses blacklisted since Q1 of 2025. The exchange also touted collaboration with law enforcement agencies to freeze $131 million in illicit funds while helping users recover $12.8 million.

Still, it acknowledged that technology alone will not enable security. According to the exchange, scams are increasingly targeting human behavior. It stated that this shows the importance of education and why it launched account takeover education initiatives.

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