A Crypto Scam App that Stole $384,006–How You Can Stay Safe

Crypto scams are proliferating at an alarming rate. Consumers are losing millions in these scams sometimes just in seconds. In addition to ICO scams, fake crypto brokers and other types of crypto scams, fake bitcoin wallets, and apps rob data and money from victims. 

One example among many crypto scams in the case of a Utah man who lost $384,006 downloaded a fake cryptocurrency app, as reported by CBS. He reported that it happened because the cybercriminals managed to disguise themselves as a legitimate service he had used in the past. 

Not long after he downloaded the fake app and gave it access to his bitcoin wallet, the scammers stole the contents and robbed his data. The crime took just seconds, but he managed to lose $384,006 and reported that he “shed a lot of tears.” The victim expresses a low expectation of getting his money back. However, with the right service, fund recovery is possible. 

CryptoComplaint experts assist people who have been affected by crypto scams as well as forex trading scams and other types of fraud. Our team has the resources to provide guidance to consumers and get them started on the fund recovery process. 

The Problem of Crypto App Scams

All types of crypto scams have increased over the past few years. This was particularly obvious during the COVID-19 pandemic. More people were at home, spending time online, and were uncertain about their financial future. They became interested in cryptocurrencies as an online alternative to physical currencies. 

This interest led to an increase in the purchase of cryptocurrencies, crypto transactions, and trading of bitcoin and other digital currencies. Along with legitimate products, scams have sprung up in large numbers to divert funds from reliable crypto services into scams. 

The losses are piling up. Between October 2020 and May 2021, 7,000 people lost $80 million with an average loss amounting to $1,900. In the case of the victim in Utah, the losses can be into hundreds of thousands of dollars. 

Crypto app scams are pervasive because they mimic legitimate apps and wallets. For those who are not experienced in using crypto products, these scams can easily fool people by using otherwise trusted platforms to market their product or can even disguise themselves as a legitimate service. Taking the time and being aware of details can help consumers distinguish scams and fake versions of apps from the real thing. 

How Crypto App Scams Work

These phony crypto apps are some of the most pernicious types of crypto scams because they take advantage of gaps in consumer knowledge. Cryptocurrency is a relatively new field and has only been around since the birth of bitcoin in 2008. 

From their starting point, cryptocurrencies have mushroomed rapidly to the point where now there are thousands of types of digital coins. In addition to these coins, there is a huge number of products, including crypt wallets, connected to these currencies. 

Given the volume of cryptocurrency products, it can be difficult to determine which are real and which are fraudulent. Crypto scam apps will imitate the visual design and content of legitimate products. They may use the same color or make their websites look alike. In some cases, they will create an actual decoy of the real thing. 

These scams aim to steal digital coins and data from their victims. They may install malware into customers’ devices or pretend to be a real app and ask the user for access to their bitcoin wallet. Once they have this data, whether they have phished it directly from the user or have infected devices with malware, they can have full access to identification and money. 

Ways to Avoid Being the Target of Crypto App Scams

Crypto scam artists are clever and use advanced technology. However, there are some ways to keep them from accessing your digital coins and data:

• Download apps only from a legitimate, secure site. 
• Research companies carefully before purchasing their product
• Verify that all communications actually came from the company
• Do not share private information by text or email—only through a secure website
• Do not assume that every app sold on Google Play or Apple Store is legitimate
• Be skeptical of very new companies

Be suspicious before purchasing and downloading any product. Check carefully first and look at the site or the service. You can read reviews, but keep in mind that many reviews are fake. Look to a trusted expert or a respected publication that reviews apps and services. 

Not only is it important to find trustworthy services and companies, but ensure that the communication is coming directly from the company. In the case of the Utah man who lost $384,006, he thought he was dealing with a company he was familiar with and they managed to create a decoy service. It may take some time, but confirm communications, that the company really did send an email to you or text or that a purchase was actually made through them. 

Also, avoid assuming that all available on Google Play or Apple Store are legitimate. These services have given false assurances in the past regarding the legitimacy of all of their offerings. 

However, there have been plenty of fake apps sold on both of these platforms. There may be fewer scams on Google Play or Apple Store than are available just randomly on the web, but check out all of your options.

What to Do If You Have Lost Money to a Crypto App Scams

If you have been the target of a crypto scam, it is important to file a complaint. If a reliable service has been decoyed, notify them that there are scammers offering a fake version of their service. Do not give up on the idea of fund recovery. CryptoComplaint will give you guidance on tracking down scammers and retrieving your funds. 

Have You Been Affected by a scam? Talk to CryptoComplaint Experts

Consult with CryptoComplaint experts immediately if you have lost money to a CFD scam, a forex trading scam, a crypto scam or another type of fraud. Our team can provide solutions and advice on how to seek restitution and recover from fraud.