The FBI recently issued a warning to consumers about fraudulent cryptocurrency applications that have scammed hundreds of victims out of an estimated $42.7 million since October 2021.
The bureau reported its observation of cybercriminals contacting U.S. investors, fraudulently claiming to offer legitimate crypto investment services and convincing victims to download fraudulent mobile apps. The criminals then use the fake phone apps with increasing success over time to defraud the investors of their cryptocurrency.
The cybercriminals use the names, logos and other identifying information of legitimate financial institutions, including fake websites, to fool potential victims. Between Dec. 22, 20221, and May 7, 2022, alone, cybercriminals purporting to be legitimate financial institutions defrauded at least 28 victims of about $3.7 million.
The FBI encourages financial institutions and their customers who suspect fraud through fake crypto investment apps to contact the bureau via the Internet Crime Complaint Center or their local FBI field office.