The Rise of Fake Cryptocurrency Apps and How to Avoid Them
Scammers use fake crypto apps to steal funds from investors. Some rogue apps end up in official app stores.
Analysis
Scammers have been taking advantage of the decentralized and immutable nature of the blockchain to defraud crypto investors since the advent of technology.
And, according to the latest FBI fraud report, fraudsters are using fake crypto apps to steal money from unsuspecting crypto investors. He points out that US investors have lost an estimated $42.7 million to scammers via fake apps.
The schemes would take advantage of the increased interest in cryptocurrencies, especially during bull markets, to woo crypto users.
How Fake Crypto App Scammers Lure UsersScammers using fake crypto apps use a myriad of techniques to lure investors. Here's a breakdown of some of them.
Social engineering programsSome scam networks using fake crypto apps use social engineering strategies to lure victims.
In many cases, scammers befriend victims through social platforms such as dating sites and then trick them into downloading apps that appear to be working cryptocurrency trading apps.< /p>
Scammers then convince users to transfer funds to the app. The funds are, however, "locked" once the transfer is made, and the victims are never allowed to withdraw any money.
In some cases, scammers lure victims with outlandish high-yield claims. The ruse ends when the victims realize they cannot redeem their funds.
Speaking to Cointelegraph earlier this week, Rick Holland, Chief Information Security Officer of Digital Shadows – a digital risk protection firm – stressed that social engineering remains a top strategy among scammers because it requires minimal effort.
“Relying on the proven method of social engineering is much more practical and lucrative,” he said.
The cybersecurity chief added that social engineering makes it easy for scammers to target wealthy people.
Recognizable brand namesSome fake crypto app scammers have used recognizable brand names to push fake apps due to the trust and authority they wield.
In one case highlighted in the latest FBI cipher...
Scammers use fake crypto apps to steal funds from investors. Some rogue apps end up in official app stores.
Analysis
Scammers have been taking advantage of the decentralized and immutable nature of the blockchain to defraud crypto investors since the advent of technology.
And, according to the latest FBI fraud report, fraudsters are using fake crypto apps to steal money from unsuspecting crypto investors. He points out that US investors have lost an estimated $42.7 million to scammers via fake apps.
The schemes would take advantage of the increased interest in cryptocurrencies, especially during bull markets, to woo crypto users.
How Fake Crypto App Scammers Lure UsersScammers using fake crypto apps use a myriad of techniques to lure investors. Here's a breakdown of some of them.
Social engineering programsSome scam networks using fake crypto apps use social engineering strategies to lure victims.
In many cases, scammers befriend victims through social platforms such as dating sites and then trick them into downloading apps that appear to be working cryptocurrency trading apps.< /p>
Scammers then convince users to transfer funds to the app. The funds are, however, "locked" once the transfer is made, and the victims are never allowed to withdraw any money.
In some cases, scammers lure victims with outlandish high-yield claims. The ruse ends when the victims realize they cannot redeem their funds.
Speaking to Cointelegraph earlier this week, Rick Holland, Chief Information Security Officer of Digital Shadows – a digital risk protection firm – stressed that social engineering remains a top strategy among scammers because it requires minimal effort.
“Relying on the proven method of social engineering is much more practical and lucrative,” he said.
The cybersecurity chief added that social engineering makes it easy for scammers to target wealthy people.
Recognizable brand namesSome fake crypto app scammers have used recognizable brand names to push fake apps due to the trust and authority they wield.
In one case highlighted in the latest FBI cipher...
What's Your Reaction?
