Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.
FBI Warns Against Fake Crypto Apps – 244 Investors Scammed, $42.7M Lost – Featured Bitcoin News
The Federal Bureau of Investigation (FBI) has issued a warning about fake cryptocurrency apps defrauding investors. “The FBI has identified 244 victims and estimates the approximate loss associated with this activity to be $42.7 million,” the US law enforcement agency said.
FBI’s Crypto App Warning
The Cyber Division of the Federal Bureau of Investigation (FBI) issued a notice on Monday warning investors and financial institutions about fake cryptocurrency applications. The notice states:
The FBI is warning financial institutions and investors about cybercriminals creating fake cryptocurrency investment applications (apps) to defraud cryptocurrency investors.
The FBI explained that it has observed cybercriminals contacting US investors claiming to offer legitimate crypto investment services. The criminals then convinced investors to download fraudulent mobile apps.
The message continues:
The FBI has identified 244 victims and estimates the approximate loss associated with this activity at $42.7 million.
One scheme the FBI gave as an example ran between December 2021 and May this year. Cyber criminals pretended to be a legitimate US financial institution. They convinced the victims to download a fake app and deposit cryptocurrencies into wallets linked to the victims’ accounts on the app. When the victims tried to withdraw money, they were asked to pay taxes. But after paying, they still couldn’t withdraw their money.
Another similar scheme, operating under the name Yibit, ran from October 2021 to May this year. Victims were asked to download the Yibit app, deposit cryptocurrency and then pay taxes before withdrawing. However, after paying, they were unable to withdraw their money.
A third example the FBI gave was a scheme that ran during November 2021. Cybercriminals operating under the company name Supayos, also known as Supay, instructed victims to download the Supay app and make multiple crypto deposits to their Supay accounts. The scammers then told a victim that he was enrolled in a program that required a minimum balance of $900,000 without his consent. When the victim tried to cancel the subscription, he was asked to deposit the requested funds or have all assets frozen.
The FBI advised financial institutions and investors who believe they have been defrauded through fake crypto investment apps to contact the agency through the Internet Crime Complaint Center or their local FBI field office.
What do you think of the FBI warning about fake crypto apps? Let us know in the comments section below.
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