FBI warns fake crypto apps cost investors $42.7M

July 19, (MT Newswires) — Alarms have been raised by the Federal Bureau of Investigation over the growth of fake cryptocurrency wallets that continue to defraud unsuspecting investors.

In a notification published Monday, the agency said 244 victims have lost around $42.7 million to scams related to fake cryptocurrency applications.

From December through May, 28 people lost $3.7 million after cyber criminals persuaded them to download an app and make deposits into wallets. Thirteen attempted to withdraw funds only to receive an email saying they were required to pay a tax on the funds, the FBI said. After paying the supposed tax, they were still unable to get their money back.

At least four people were scammed out of $5.5 million between October and mid-May by a representative of a supposed crypto firm that went by the name YiBit1, the bureau said.

In another high-profile case that involved a victim losing $900,000 in November, cybercriminals targeted victims by asking them to download the Supay app.

According to the FBI, cybercriminals have targeted investors in the United States by requiring them to install fraudulent applications as part of a claim to offer legitimate services in the crypto finance industry.

“The FBI has observed cyber criminals using the names, logos and other identifying information of legitimate USBUSs, including creating fake websites with this information, as part of their ruse to gain investors,” the private industry notification said. “Financial institutions should warn their customers about this activity and inform customers as to whether they offer cryptocurrency services.”

Copyright © 2022 MT Newswires. All rights reserved. MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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