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A Fake Crypto App Defrauded Investors Of $42 Million, Says FBI

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A Fake Crypto App Defrauded Investors Of $42 Million, Says FBI

(CTN News) – Recently, the FBI issued a warning to consumers about fraudulent crypto applications that have scammed 244 victims out of $42.7 million.

US investors have been contacted by cybercriminals offering fake cryptocurrency investment services and convinced to download fraudulent apps, which the cybercriminals have used with increasing success over time to defraud them of their cryptocurrency, according to a warning published on Monday.

It was determined that individuals operating under the company name YiBit defrauded victims of $5.5 million and that individuals pretending to be unnamed but legitimate U.S. financial institutions scammed investors out of $3.7 million.

Yibit cybercriminals persuaded users to download the YiBit app and deposit cryptocurrency. Upon depositing their funds, 17 victims received an email stating they would have to pay taxes on their investments. Funds could not be withdrawn by four victims.

One app called Supayos, or Supay, asked users for deposits and then froze their accounts after telling them $900,000 was the minimum balance requirement.

Approximately 99% of Gen Z and 98% of millennials use mobile banking apps regularly, and the FBI advises investors and financial institutions to be mindful of unsolicited requests to download investment apps.

Before providing any personal financial information to an application or company, the Bureau recommends verifying their legitimacy.

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