The Federal Bureau of Investigation (FBI) has issued a notice warning financial institutions and investors about fraud crypto apps.
The FBI identified 244 victims and estimated the losses to be about $42.7 million.
FBI says that ‘cyber criminals contacting US investors, fraudulently claiming to offer legitimate cryptocurrency investment services, and convincing investors to download fraudulent mobile apps’ have increased rampantly.
The agency provides the example of a fraudulent company operating under the name YiBit app, which defrauded at least four victims of a total of $5.5 million. Another fraudulent company under the name of Supayos operating in November 2021 was also mentioned.
FBI recommends both financial institutions and investors to take proactive measures to avoid falling for such scams and protect their crypto.
The agency suggests institutions to regularly conduct online checks to verify that their company’s name, logo or other information is not associated with fraudulent activity.
It also asks investors to do their due diligence and be ‘wary of unsolicited requests’ before downloading investment applications.
Read Also: The FBI Issues Warning to LinkedIn Users About Crypto Scams
The agency also encouraged anyone with information regarding such activities to report to their local FBI field office.
