FBI: Beware of Fraudulent Crypto Investment Applications

The Federal Bureau of Investigation (FBI) warned financial institutions and investors to be careful when dealing with digital assets because the sector is rammed by scammers whose only goal is to defraud people. As of the moment, the agency has identified 244 victims of fraudulent crypto schemes who lost a combined sum of $42.7 million.

Cyber Criminals Very Active in the Crypto Space

America’s top national security and law enforcement agency alerted that bad actors have flooded the cryptocurrency universe. Those exploit legitimate digital asset investments, defraud US consumers and cause financial losses to monetary organizations, the FBI added.

The agency said bad actors are highly creative and take advantage of the increased
interest in mobile banking and cryptocurrency investing. Some tricks include creating fake websites using logos, names, and other identifying information of legitimate companies.

Conned individuals believe they deal with authorized companies, but in most cases, it is too late when they understand the whole investment was a pure scam.

The FBI urged financial institutions to inform their customers about this activity and advise them on how to detect such fake websites.

The law enforcement organization has so far identified 244 victims of fraudulent crypto investments whose losses exceed $42 million. Some attacks were carried out by notorious hacking groups, including YiBit, Supayos, and AKA Supay.

To prevent such cases in the future, the Bureau recommended investors find out as much information about the financial institutions they are dealing with and understand whether they provide cryptocurrency services. Joining a dubious investment scheme advertised by an unfamiliar person is something to be avoided, too.

“Verify an app is legitimate before downloading it by confirming the company offering the app actually exists, identifying whether the company or app has a website, and ensuring any financial disclosures or documents are tailored to the app’s purpose and the proposed financial activity,” the FBI concluded.

The Previous Warning

In April this year, the agency sounded a note of caution that North Korean-sponsored hackers seek to exploit cryptocurrency companies and exchanges in the States. Their main goal is to “generate and launder funds” to support the totalitarian regime in the Asian country.

According to the FBI, the most active hacking groups that attack US businesses are “Lazarus,” “ATO38,” “Stardust Chollima,” and “BlueNoroff.”

Usually, those collectives engage with victims on social media platforms. They encourage investors to download trojanized digital asset applications on Windows or macOS operating systems. Afterward, the wrongdoers gain access to the victim’s devices to steal private keys and drain funds.

The FBI advised people to keep their passwords and identifying credentials safe and change them frequently. In case of a suspected fraudulent scheme, individuals should urgently notify law enforcement agencies.


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