The FBI has issued a warning about fake cryptocurrency apps that are stealing millions from investors.

Virender Rakwal
Virender Rakwal
3 Min Read
  • FBI has issued a public warning about fake cryptocurrency applications.
  • The FBI estimated that 28 individuals were victimized about $3.7million.

The Federal Bureau of Investigation (FBI) has issued a public warning against fraudulent cryptocurrency applications. According to an alert issued by the Securities and Intelligence Agency on July 18, hackers have created fake apps that use the same logos and same other identifying details as legitimate cryptocurrency organizations in an attempt to defraud investors.

FBI Advisory on fake cryptocurrency apps
FBI Advisory

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FBI issues warning regarding fake cryptocurrency applications.

According to the FBI, These fake apps have already tricked 244 people. In one case, cyber criminals induced victims to download an app with the same branding as a legal U.S. banking institution, then pushed them to deposit cryptocurrency into wallets apparently linked to their accounts.

After attempting to withdraw the deposited funds from the applications, the victims were pushed to first make tax payments. However, this was really a plot to obtain additional monies from the victims, as withdrawals would be disabled even after making these payments.

Fraud Details about fake cryptocurrency scams
Fraud Details

According to the FBI, about $3.7 million was scammed from 28 individuals between December 2021 and May 2022. Another similar operation saw cybercriminals working under the firm name “YiBit” scam at least four victims of about $5.5 million using a similar style of duplicity between October 2021 and May 2022.

In the third instance, in November of last year, criminals using the name “Supay” were also involved in defrauding US investors. These cybercriminals duped two victims into depositing cryptocurrency in their digital wallets within the apps. These funds would be frozen until additional funds were deposited into the cryptocurrency wallets.

In another case, the user claims they were deceived by a fake Ledger Live crypto wallet app called “Ledger Live Plus” in the Microsoft app store. According to the user, the fake program has already stolen $20,000 from him.

Scams in the cryptocurrency market are on the rise.

With the crypto industry experiencing significant growth, fraudsters trying to scam their victims have raised their interest in the field. Last year, a big scam occurred in which a fake cryptocurrency program on the Apple app store was used to steal $600,000 in Bitcoin.

The United States Federal Trade Commission announced last month that scammers stole $1 billion in cryptocurrency last year. According to the regulator, around half of the crypto frauds originated on social media. The FBI also warned cryptocurrency investors to be wary of uninvited solicitations to download investment apps, as some may be fraudulent.

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Posted by Virender Rakwal
Ceo/ Founder at XryptoNation. Senior Web Developer, Blockchain Expert.
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