(Kitco News) The FBI said fake crypto applications had defrauded 244 people out of about $42.7 million since October 2021.
"The FBI has observed cyber criminals contacting U.S. 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 a warning published Monday.
One case highlighted was the company YiBit, which managed to get away with $5.5 million by compelling people to download its app and deposit their cryptocurrency onto it. Seventeen of the victims were then told to pay taxes when withdrawing funds, and four others were never able to withdraw at all.
In another instance, individuals pretended to be from legitimate financial institutions and scammed people out of $3.7 million.
Also, an app called Supayos or Supay convinced people to deposit their cryptocurrency and then froze their accounts.
The FBI is preaching vigilance and asks people who suspect they have been defrauded via fake cryptocurrency apps to contact the Internet Crime Complaint Center or a local FBI field office.
"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 with this information, as part of their ruse to gain investors. Financial institutions should warn their customers about this activity and inform customers as to whether they offer cryptocurrency services," the warning added.
