Security News > 2022 > July > Bogus cryptocurrency apps steal millions in mere months

Cybercriminals posing as legitimate investment firms and cryptocurrency exchanges have stolen tens of millions of dollars from more than 200 people by convincing them to download mobile apps and deposit cryptocurrency into wallets owned by the perpetrators.

According to an alert [PDF] sent out on Monday by the FBI, the cyber-thieves are contacting US investors, fraudulently claiming to be legitimate organizations offering cryptocurrency services and mobile apps.

"Cyber criminals are creating fraudulent cryptocurrency investment apps to exploit legitimate cryptocurrency investments, defrauding US investors and causing reputational harm to US investment firms," the FBI wrote in the alert.

Cryptocurrency plays an increasingly central part in other cybercrimes, particularly ransomware, where payment is typically made in cryptocurrency.

Between October 4, 2021, and May 13, thieves using the name YiBit - a onetime legitimate cryptocurrency exchange that apparently shut down in 2018 - convinced investors to download its app and deposit cryptocurrency into wallets.

The FBI is urging financial institutions to warn customers about such scams and give them ways to report it, to be transparent about the cryptocurrency services and mobile apps they offer, and conduct period online searches to detect fraud if it's happening.

News URL

https://go.theregister.com/feed/www.theregister.com/2022/07/18/fbi-cryptocurrency-scams/