Hot New Crypto App? It Could Be a Fake That Will Steal Your Money, FBI Says
If you're thinking of investing in cryptocurrency, watch out for fake apps. The FBI says hundreds of people have fallen victim to scammers promoting bogus cryptocurrency investment apps.
The agency today sent out an alert(Opens in a new window) about the scheme, which involves fraudsters reaching out to potential victims and convincing them to use a fake cryptocurrency app. “The FBI has identified 244 victims and estimates the approximate loss associated with this activity to be $42.7 million,” the agency says in the advisory.
According to the FBI, scammers have been using “names, logos, and other identifying information” from legitimate financial institutions and cryptocurrency companies to trick users into downloading bogus apps.
In one case, the scammers operated under the brand YiBit, a cryptocurrency exchange that the FBI says closed in 2018. From October 2021 to May 2022, scammers defrauded at least four victims out of $5.5 million by tricking them into downloading a fake YiBit app. The victims then deposited their cryptocurrency into the app only to lose access to withdrawing the funds.
The scammers also promoted(Opens in a new window) the YiBit app on Reddit in an attempt to lure unsuspecting users into downloading it. Users say the scammers approached potential victims by sending messages on WhatsApp from accounts belonging to women.
In another case, the FBI says the scammers looted about $3.3 million in funds from at least 28 victims by creating a fake app for an unnamed US financial institution. “When 13 of the 28 victims attempted to withdraw funds from the app, they received an email stating they had to pay taxes on their investments before making withdrawals. After paying the supposed tax, the victims
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