FBI, Cryptocurrency FBI Releases Public Alert Regarding Fraudulent Cryptocurrency Apps


App store operators appear to be engaged in a continual game of whack-a-mole with fake crypto apps.


The Federal Bureau of Investigation (FBI) of the United States has issued a public warning regarding fraudulent Cryptocurrency applications, which are estimated to have defrauded U.S. investors out of $42.7 million to date.


In order to mislead investors, fraudsters have constructed apps using the same logos and identifying information as real Crypto organisations, according to a Monday advice published by the securities and intelligence department.


Also Read: South Africa To Regulate Crypto As Financial Asset


The FBI reported that 244 individuals have previously fallen victim to these fraudulent applications.



In one instance, cybercriminals persuaded victims to download an app bearing the logo of a legitimate U.S. financial institution and instructed them to deposit Cryptocurrencies into wallets supposedly associated with their accounts.


When victims attempted to withdraw funds from the app, they would be required to pay taxes on those funds.


Also Read: Crypto Lending Platform Celsius Files For Bankruptcy


However, this was really another pretext to separate victims from additional monies, as the withdrawals would remain inaccessible even if the victims made the payments.


Approximately $3.7 million was stolen from 28 victims between December 2021 and May 2022, according to the FBI.


Between October 2021 and May 2022, cybercriminals operating under the firm name "YiBit" defrauded at least four victims of around $5.5 million employing a similar style of deception.


In November 2021, a third instance featured thieves operating under the moniker "Supay."


Also Read: What Is Coinbase? | How To Use Coinbase Account


They conned two victims by convincing them to transfer Cryptocurrency into their app wallets, which were subsequently frozen unless additional amounts were deposited.


On Crypto Twitter, warnings concerning bogus apps have also been circulating.


A user reported that a buddy recently fell victim to a scam that originated on the internet messaging service WhatsApp, in which the victim was enticed to download a bogus cryptocurrency app and put funds into the app's wallet.


A week later, the cryptographic application vanished.


In early 2018, the cyber security company ESET found a "complex strategy" that distributed Trojan programmes disguised as popular Cryptocurrency Wallets.


Then, these applications would attempt to steal Cryptocurrency from their victims.


A fake cryptocurrency programme masquerading as a mobile Trezor app on Apple's App Store apparently caused one user to lose $600,000 worth of Bitcoin (BTC) in 2017.


The United States Federal Trade Commission (FTC) said in June 2022 that as much as $1 billion in cryptocurrency was lost to scammers since 2021, with roughly half of all crypto-related scams emanating from social media platforms.


The FBI has advised Cryptocurrency Investors to be aware of unsolicited solicitations to download investing apps, to verify an app's (and the company's) legitimacy, and to "approach with scepticism" apps with limited or broken functionality.


Leave a Comment


CryptoHelpExchange disclaims all liability for any mistakes on this website (including omissions or inaccurate material). Even if they are the consequence of mistakes, CryptoHelpExchange disclaims all liability for any trading or investment losses caused by visitors.

Without the express consent of CryptoHelpExchange, no part of the written information on this website may be duplicated. If it is discovered that material is being copied without CryptoHelpExchange's consent, that organization will pursue legal action against those responsible to the fullest extent permitted by the law. The aforementioned rule does not apply to any RSS feeds that CryptoHelpExchange offers or situations where explicit permission from CryptoHelpExchange was given.

Your single and only option if you disagree with any of the terms as stated above is to stop using CryptoHelpExchange.