The Federal Bureau of Investigations (FBI) has warned about fraudulent crypto apps. The warnings come after hackers have stolen tens of millions from U.S. investors. The hackers pose as legitimate service providers through crypto apps and steal from unaware investors.
In an advisory published by the FBI on Monday, some hackers even pose as big cryptocurrency organizations. They use legitimate crypto organizations’ logos, names, and other identifying information. Thus, they manage to convince the investors to download their apps.
After downloading the apps, investors could not withdraw or send funds deposited into their accounts. When they attempted to make any transaction, they received messages directing them to pay taxes on the investment first. Even after paying the “taxes,” their funds remained locked.
The FBI claims that cybercrimes have become a severe problem in the United States. According to the FBI, these hackers have managed to steal roughly $42.7 million from 244 investors. The cybercriminals stole the money in an eight-month window, from October 2021 to May 2022.
In one case, the hackers posed as employees of YiBit Company, yet the crypto exchange closed its operations in 2018. The hackers stole $5.5 million from four victims using a fake app.
In another case, cybercriminals posed as representatives of an unnamed legitimate financial firm. Between December 2021 and May 2021, these hackers managed to take $3.7 million from 28 victims.
The FBI did not attribute or name the cybercriminals to a particular group. But in recent months, government agencies like the FBI and CISA have warned about North Korean hackers. For a long time, North Korea has used crypto-stealing schemes to fund its nuclear weapons programs. North Korean hackers target crypto and blockchain firms with malicious cryptocurrency-stealing applications.
For so long, hackers have depended on cryptocurrency as a mode of financial extraction. But recently, they have shifted their attention to blockchain and crypto wallet tools. Last month, cybercriminals saw the potential to take $100 million from Harmony’s Blockchain Bridge. Government agencies link the attack to the Lazarus group from North Korea.
Dil Bole Oberoi
