Tech
Google sues alleged cryptocurrency scammers
Google has filed a lawsuit against two alleged cryptocurrency scammers that he allegedly uploaded 87 different fraudulent apps and engaged in other activities in pursuit of romance scams that affected more than 100,000 people.
The developers, based in mainland China and Hong Kong, allegedly uploaded 87 apps that were downloaded by more than 100,000 people and defrauded targets of up to tens of thousands of dollars.
The apps uploaded by the couple and their associates have been targeting users since at least 2019, posing as legitimate cryptocurrency investment platforms but actually created to steal funds, Google said in its lawsuit, filed in federal court in New York .
The scams allegedly run by Yunfeng Sun in Shenzhen and Hongnam Cheung in Hong Kong are part of a growing trend of “pig slaughter” schemes, known as such in reference to the process of fattening a pig before slaughtering it.
Image credit: Unsplash
Financial fraud
Such scams they involve forming relationships or romance with a target, then convincing them to invest funds in a fraudulent cryptocurrency scheme.
The two named in Google’s lawsuit allegedly made initial contact with the targets via text messages apparently sent incorrectly as “I’m Sophia, do you remember me?” or “I always miss you, how are your parents, Mike?”
They would then try to establish a relationship or romance with the target, transferring the conversation to a messaging app such as WhatsApp and convincing him to download one of the fraudulent crypto apps and make investments.
The apps were supported by fake online videos and promised high returns.
Fake crypto apps
When users made investments, the apps displayed balances and returns, but when users attempted to withdraw funds they were unable to do so.
The apps would then require additional “fees” of 10 to 30 percent to cover fees or taxes. Once the target’s funds run out, the service will stop contact with him, Google said.
Google said the integrity of its app store and other services was threatened by these actions and said it had suffered economic damages of $75,000 (£59,000) in the fraud investigation.
Google is asking the court to block the couple from accessing Google services to commit further fraud and unspecified damages.
Global scope
Pig slaughter scams have increased dramatically after the Covid-19 pandemic and are often operated by compounds in Asia made up of hundreds or thousands of people, targeting victims around the world, according to a recent FBI alert.
Myanmar authorities arrested 44,000 suspected online scammers last year in a joint operation with Chinese police, with another 807 suspects arrested in Myanmar in March, including 455 Myanmar nationals and 354 Chinese nationals, according to the news agency Xinhua.