Federal Bureau of Investigation has warned investors about fraudulent cryptocurrency apps. “The FBI has identified 244 victims and estimates the approximate loss associated with this activity to be $42.7 million,” said the U.S. law enforcement agency.
FBI’s Crypto App Warning
Monday was the cyber division of Federal Bureau of Investigation. Investors and financial institutions were warned about fraudulent cryptocurrency application. It states that:
FBI has issued a warning to financial institutions as well as investors regarding fraudulent crypto investment applications. These apps are designed to defraud investors.
FBI stated that cybercriminals were contacting U.S. investors claiming they offer crypto investment services. Investors were convinced by these criminals to get fraudulent apps for their mobile phones.
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FBI estimates that there are approximately $42.7 Million in losses associated with the activity. It has already identified 244 victims.
An example scheme provided by the FBI ran from December 2021 through May 2019. They claimed to represent a U.S. financial institution. They convinced victims to download a fake app and deposit cryptocurrencies into wallets associated with the victims’ accounts on the app. They demanded taxes from the victims when they attempted to withdraw money. However, even though they had paid, the victims were still unable withdraw their funds.
Similar schemes were also available under the pseudonym Yibit. They ran between October 2021 and May 2019. Victims were requested to download and deposit cryptocurrency using the Yibit App, then pay taxes for withdrawals. They were unable to withdraw the funds after they had paid.
Another example provided by the FBI was one that took place in November 2021. Supayos, also known as Cybercriminals, instructed their victims to use the Supay app to make several crypto deposits into Supay accounts. One victim was then told by the scammers that he had been enrolled in an account with a $900K minimum balance. The scammers told the victim to either deposit the funds requested or to have his assets frozen if he tried to cancel the subscription.
Financial institutions and investors that believe they were deceived by fake cryptocurrency investment apps are advised to reach out to the FBI via the Internet Crime Complaint Center, or the local FBI Field Office.
Let us know what you think about the FBI warning against fake crypto apps. Comment below to let us know your thoughts.
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