Security News > 2022 > July > FBI warns of fake cryptocurrency apps used to defraud investors
The FBI has warned today that cybercriminals use fraudulent cryptocurrency investment applications to steal funds from US investors.
"The FBI has observed cyber criminals contacting US investors, fraudulently claiming to offer legitimate cryptocurrency investment services, and convincing investors to download fraudulent mobile apps, which the cyber criminals have used with increasing success over time to defraud the investors of their cryptocurrency," the FBI said in an alert published Monday.
Between 22 December 2021 and 7 May 2022, other cybercriminals impersonated a legitimate US financial institution to defraud dozens of other victims out of millions of dollars worth of cryptocurrency.
They used a similar tactic, tricking victims into installing a bogus app and depositing cryptocurrency into wallets allegedly linked with the victims' accounts on the app.
The FBI has previously warned cryptocurrency owners of fraudsters targeting virtual assets by impersonating crypto exchange or payment platform's support staff.
In today's alert, the FBI advised [PDF] investors always to be wary of prompts to install investment apps from unknown individuals, to verify that the company behind such apps is legitimate, and to treat apps with broken or limited functionality with skepticism.