Security News > 2022 > July > FBI Warns Fake Crypto Apps are Bilking Investors of Millions
Threat actors have defrauded 244 U.S. investors of about $42 million through fake cryptocurrency apps that exploit people's legitimate investments in digital currency, the FBI has revealed.
The agency observed a number of cybercriminal campaigns that duped people into downloading malicious apps through which threat actors extorted money from victims, the FBI said in a Private Industry Notification published Monday.
In February of last year, hundreds of investors fell prey to a fake cryptocurrency scam that conned them out of $11 million through investments in a fake cryptocurrency called "Bitcoiin." The campaign even had celebrity backing, as actor Steven Seagal was hired to promote the company called "Bitcoiin2Gen" or "B2G" that served as the front for the fraudulent activity.
The latest FBI warning also is not the first time the feds sounded an alarm over cybercriminals targeting investors.
In its warning, the FBI revealed the details of three specific cryptocurrency fraud campaigns observed between October 2021 and May 2022 that alone defrauded investors of more than $10 million.
Investors themselves also can protect themselves by being wary of unsolicited requests to download investment applications, verifying if an app is legitimate before downloading it, and treating apps with limited and/or broken functionality with suspicion, according to the FBI. The FBI is encouraging people to report any suspicious activity related to cryptocurrency fraud to their local field offices.