- The FBI has issued a new warning about cybercriminals duping investors out of millions through fraudulent cryptocurrency investment apps.
- At least 244 victims have been identified and total losses amount to $42.7 million.
- Suspicious cryptocurrency apps have used the names and logos of financial companies to entice users to make deposits.
The FBI has issued a new warning against cybercrimes targeting crypto investors through fraudulent apps. A new alert from the main federal agency revealed that They have identified at least 244 victims and that the total losses amount to 42.7 million dollars. and counting.
FBI Issues Warning for Crypto Investors
As the cryptocurrency market recovered from the recent bloodbath, the FBI identified cybercriminals who cheated investors through fraudulent applications. The federal agency issued an alert after identifying 244 victims and total losses of 42.7 million dollars. Suspicious Cryptocurrency Apps used the names and logos of legitimate financial companies to encourage victims to deposit crypto to a wallet address.
When users tried to withdraw funds, they were told that they had to pay taxes before they could release their investment. Investors who paid taxes on the fraudulent investment were effectively “throwing away good money for bad.” It became a challenge for investors to recover their savings after investing in the fraudulent applications.
The FBI claims that These criminals are looking
take advantage of the growing interest in mobile banking and investment in cryptocurrencies.
The agency has urged companies to warn their customers about this activity and to carry out regular checks to ensure that your logos are not being used without your consent.
The FBI noted that between December 2021 and May 2022, a group of cybercriminals posing as a legitimate US financial business tricked 28 victims into downloading an app. The scammers used the logo and name of a real financial institution to encourage victims to deposit cryptocurrencies into accounts associated with the company, however no withdrawal was facilitated.
This app extorted $3.7 million from its victims, according to the FBI.
Source: Fx Street
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