Fraudulent Crypto Apps Defrauded Investors Out Of $42M

The Cybercrime Division of the Federal Bureau of Investigation (FBI) has released a warning regarding fake cryptocurrency apps that have defrauded investors of around $42m.

“The FBI has identified 244 victims and estimates the approximate loss associated with this activity to be $42.7 million,” said the Department of Justice. 

The FBI said that cybercriminals have been contacting U.S. investors, claiming to be from legitimate cryptocurrency investment services, before convincing them to download fake apps bearing the names and logos of real investment firms and take the money they deposit on it. 

Between Dec. 22 and May 7 at least 28 victims were defrauded of $3.7 million by suspects claiming to be from US financial institutions, while on  Oct. 4 and May 13, four investors lost around $5.5 million to fake cryptocurrency exchange platform YiBit agents.

Last November 2021, one victim lost around $900,000 to criminals claiming they were from Supay, a Melbourne-based cryptocurrency exchange provider and instructed them to make deposits on their crypto wallets.

The FBI advised the public to take extra precaution when making crypto transactions and to verify apps and wallet addresses. 

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