FBI Warns Investors, Financial Institutions On Fake Crypto Investment Apps

The Federal Bureau of Investigation’s Cyber Division has warned financial institutions and investors in the U.S. about cyber criminals creating fraudulent cryptocurrency investment applications (apps) to defraud cryptocurrency investors.

In a private Industry Notification, the FBI said it has observed cyber criminals contacting US investors, fraudulently claiming to offer legitimate cryptocurrency investment services through their apps.

The FBI added that the cyber criminals convince investors to download fraudulent mobile apps, which the cyber criminals have used with increasing success over time to defraud the investors of their cryptocurrency holdings.

The cyber criminals seek to take advantage of the increased interest in mobile banking and cryptocurrency investing. The FBI has observed cyber criminals using the names, logos, and other identifying information of legitimate USBUSs, including creating fake websites, to appear more legitimate.

The FBI has identified 244 victims and estimates the approximate loss associated with this activity to be $42.7 million.

Among the recent frauds, unidentified cyber criminals purporting to be a legitimate US financial institution defrauded at least 28 victims of approximately $3.7 million between December 22, 2021 and May 7, 2022. Cyber criminals operating under the company name YiBit also defrauded at least four victims of approximately $5.5 million between October 4, 2021 and May 13, 2022.

The FBI recommends investors to be wary of unsolicited requests to download investment applications, especially from individuals they have not met in person or whose identity has not been verified.

The agency also urged investors to verify an app is legitimate before downloading it by confirming if the company offering the app actually exists or has a website.

The law enforcement agency encourages financial institutions and their customers who suspect they have been defrauded through fake cryptocurrency investment apps to contact the FBI.

For More Cryptocurrency News, visit rttnews.com

Source: Read Full Article