Fake cryptocurrency apps on mobile devices have already duped hundreds of investors, stealing more than a staggering $42 million, warns the Federal Bureau of Investigation.
While some crypto investors made or lost money due to its extreme price volatility, other folks were unfortunate to be defrauded by swindlers using mobile apps.
An illustration picture taken in London on May 8, 2022, shows gold plated souvenir cryptocurrency Tether (USDT), Bitcoin and Etherium coins arranged beside a screen displaying a trading chart.
Fake Crypto Apps
The FBI issued its latest warning against fake crypto apps on smartphones while spitting out some alarming data about the amount of stolen money.
As per a news story by Gizmodo, the Bureau reports that fake crypto apps have stolen millions of dollars from hundreds of its victims in the past year alone.
To be more precise, the FBI says that a total of 244 victims have already lost roughly $42.7 million after falling for notorious fake crypto apps on mobile devices.
Crypto scammers are all over the internet looking for their next new victim. But some fraudsters are going the extra mile and are creating apps to go about their elaborate schemes.
And it turns out that fake crypto apps alone have already pocketed massive amounts of money. It is worth noting that the bigger picture across the world might be even worse, as the data of the FBI only includes victims in the United States.
This illustration photograph taken on July 19, 2021 in Istanbul shows a physical banknote and coin imitations of the Bitcoin crypto currency.
According to a recent report by CNET, the fraudsters behind the fake crypto apps are using the names and logos of legitimate platforms to make it look like it is the real deal.
The FBI discloses that these notorious fraudulent apps are enticing US investors to download them by offering seemingly legit financial services.
Gizmodo reports that the app would ask its victims to deposit their money to the fake crypto app. But when its users attempt to withdraw their money, criminal minds would prevent them from doing so.
FBI shares that one of the fake app schemes has stolen around $5.5 million worth of crypto from four victims.
Crypto Scams
Despite all that, the fake crypto app scheme turns out to be a small slice of the pie.
In fact, CNET notes that various crypto scams have already stolen more than $1 billion worth of digital tokens from approximately 46,000 victims in the US since 2021.
Read Also: A Crypto Investor Says He Lost House Down Payment As Voyager Digital Files for Bankruptcy
How to Avoid Getting Duped by Fake Crypto Apps
Besides the latest warning from the FBI, it also shared some tips to avoid being the next victim of fake apps.
The Bureau advises investors to take time to verify if an app is a real deal before downloading it on their phone.
In addition, the FBI also tells them to think twice when getting "unsolicited requests to download investment applications."
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