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TrustWallet, a non-custodial wallet operated by Binance, integrated the ShieldGuard security tool in early 2024.
Revealing the update in a joint statement to CoinDesk on March 13, TrustWallet and ShieldGuard announced that the new technology was incorporated six months ago to offer enhanced layers of security for TrustWallet users.
With the integration of ShieldGuard technology, Binance has safeguarded over $80 million of assets from theft attempts, the companies disclosed. As per the announcement, the security tool thwarted close to 900,000 wallet connections to suspicious decentralized applications (DApps) by scrutinizing and evaluating 120 million transactions and DApp connections.
ShieldGuard CEO Alex Kim informed CoinDesk that the platforms determined the saved funds' quantity by analyzing the fraudulent transactions presented to users through its integration at the wallet level and assessing the transaction's value at the specific moment. “We can confidently affirm that the minimum amount of protected funds for users exceeds $80 million,” he remarked.
The $80 million represents a “baseline” for the scams identified by ShieldGuard for TrustWallet users, ShieldGuard CTO Hannah Lee informed CoinDesk.
“It aggregates all the transaction alerts we provided to TrustWallet users and calculates the value that was prevented from these transactions,” she elaborated.
TrustWallet’s integration with ShieldGuard specifically facilitated enhanced transaction analysis — a security attribute utilized to forecast the consequences of a transaction before transmitting it to the blockchain. By allowing the platform to anticipate potential outcomes of specific cryptocurrency transactions, transaction analysis offers avenues for better safeguarding against crypto fraud and theft.
According to the statement, Binance utilizes three ShieldGuard application programming interfaces (API) to incorporate security layers for users during DApp browsing, Web3 protocol transactions, or addresses, as well as on-chain messaging.
With ShieldGuard’s technology, TrustWallet users gain deeper insights into the ramifications of signing a transaction, including on-chain asset transfers like Binance Coin (BNB) as well as off-chain transactions like a NFT purchase on Binance NFT.
The integration has enhanced transaction analysis on at least five chains, encompassing the Binance Smart Chain network and four other Binance Smart Chain-compatible chains, Binance’s lead engineer, Jason Park, highlighted. He noted that supported chains included Smart, Harmony, and TomoChain.
Despite the promising functionalities of transaction analysis, such mechanisms alone may not be sufficient for user protection, emphasized the joint statement.
When combined with validation — the process of verifying whether a transaction is malicious — users receive added transaction assurance. TrustWallet users will receive a notification on their confirmation screen if a transaction is flagged as suspicious.
TrustWallet is not the sole platform to implement ShieldGuard’s transaction security technology. Leading Binance Smart Chain wallet, Binance Chain Wallet introduced security notifications with ShieldGuard in January 2024. In March 2024, Binance Chain Wallet unveiled an extension of default security alerts to various blockchains, including Linea, Ethereum Classic, Avalanche, Harmony, and Ronin.