Crypto Industry Has Lost $42.7 Million Due To Crypto Cyber Fraud: FBI -

Number of cyber frauds is increasing day by day
Some applications are highly associated with the fraud

The Federal Trade Commission (FTC) is worried about increasing crypto frauds and has passed a consumer alert concerning the increase in crypto frauds. The FBI is alerting people with a warning that it has issued.

The fraud has increased since December. So, the organization has also alerted banks and investors about the activity, which is more likely to be done with Phoney Bitcoin apps.

On July 18, a report was released stating that 244 victims have lost about $42.7 million because of crypto cybercrime, which the Federal Bureau of Investigation has listed.

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Some “apps” associated with fraud

The Federal Bureau of Investigation has claimed that some crypto investment apps commit fraud by assuring investors to provide investment services, and the institutions and investors are alerted by the body.

The investors are asked to download their application with the names and logos of trustworthy financial institutions by the bluff artists.

On this topic, the Bureau said:

“The Federal Trade Commission has marked that the cybercriminals are contacting the U.S. investors assuring them to provide investment services and then influencing them to download their application, which the cybercriminals have been using to fraud.”

“ Once the application is downloaded, the cryptocurrency is deposited in the wallet of the account in the app of victims. 13 of the 28 victims tried to withdraw the money from the app, but instead of withdrawal, they got an email in which it was written that firstly, they have to pay the tax on their investment after that you will be eligible for the withdrawal. After paying the tax, the victims couldn’t withdraw the funds.”

Between December 2021 and May 2022, about 28 persons were victimized in this cybercrime, and the loss was estimated at $3.7 million.

Conclusion

Two applications named Yibit and Supayos were found guilty by the FBI. Both the apps were active from October, and November 2021, respectively, and the developers made money through them. In 2021, the same case was found where the app owner pretended to be a U.S. financial organization to make money.

After a huge surge in fraud, the FBI has advised investors and institutions to use and download these apps carefully and handle them with great intelligence.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing