FBI Issues Public Warning About Fake Crypto Apps
The fake encryption apps appear to be part of an ongoing molestation game with app store operators.
The Federal Bureau of Investigation (FBI) has issued a public warning about fraudulent cryptocurrency apps, which have defrauded US investors out of an estimated $42.7 million so far.
According to a July 18 notice by the security and intelligence agency, cybercriminals have created apps using the same logos and credentials as legitimate crypto companies to defraud investors. The FBI noted that 244 people have already been victimized by these bogus apps.
In one case, cybercriminals convinced victims to download an app that used the same logo as a genuine US financial institution, encouraging them to deposit cryptocurrency into wallets allegedly linked to their accounts.
When victims tried to withdraw from the app, they were asked to pay taxes on their withdrawals. However, this was just another ruse to separate more funds from the victims, because even if they made the payments, the withdrawals would continue to be unavailable.
About $3.7 million was defrauded from 28 victims between December 2021 and May 2022, according to the FBI.
Another similar operation saw cybercriminals operating under the company name "YiBit", defrauding at least four victims of approximately $5.5 million between October 2021 and May 2022, using a similar method of deception.
A third case involved criminals operating as "Supay" in November 2021. They defrauded two victims by encouraging them to deposit cryptocurrency into their wallets on the app, which would then be frozen unless that more funds are deposited.
Warnings about rogue apps have also made the rounds on crypto Twitter.
A user said that a friend recently fell victim to a scam that started on the online messaging service Whatsapp, which encouraged the victim to download a fake encryption app and load funds into the app wallet. A week later, the crypto app disappeared.
Don't get scammed. I recently had a friend fall for a #WhatsApp scam where they made him download a fake
The fake encryption apps appear to be part of an ongoing molestation game with app store operators.
The Federal Bureau of Investigation (FBI) has issued a public warning about fraudulent cryptocurrency apps, which have defrauded US investors out of an estimated $42.7 million so far.
According to a July 18 notice by the security and intelligence agency, cybercriminals have created apps using the same logos and credentials as legitimate crypto companies to defraud investors. The FBI noted that 244 people have already been victimized by these bogus apps.
In one case, cybercriminals convinced victims to download an app that used the same logo as a genuine US financial institution, encouraging them to deposit cryptocurrency into wallets allegedly linked to their accounts.
When victims tried to withdraw from the app, they were asked to pay taxes on their withdrawals. However, this was just another ruse to separate more funds from the victims, because even if they made the payments, the withdrawals would continue to be unavailable.
About $3.7 million was defrauded from 28 victims between December 2021 and May 2022, according to the FBI.
Another similar operation saw cybercriminals operating under the company name "YiBit", defrauding at least four victims of approximately $5.5 million between October 2021 and May 2022, using a similar method of deception.
A third case involved criminals operating as "Supay" in November 2021. They defrauded two victims by encouraging them to deposit cryptocurrency into their wallets on the app, which would then be frozen unless that more funds are deposited.
Warnings about rogue apps have also made the rounds on crypto Twitter.
A user said that a friend recently fell victim to a scam that started on the online messaging service Whatsapp, which encouraged the victim to download a fake encryption app and load funds into the app wallet. A week later, the crypto app disappeared.
Don't get scammed. I recently had a friend fall for a #WhatsApp scam where they made him download a fake
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