Tech
Scammers with Google using 87 fake encryption apps on Google Play
Crypto scams are not new, and many unsuspecting people new to the crypto scene have become victims of them. According to FBI Internet crime data, crypto scams will cost Americans $2.3 billion in 2022. The FBI also warned Americans Crypto fraud is rampant on LinkedIn in the same year.
Recently, Google investigated and caught two scammers who fraudulently withdrew money in the form of crypto apps via the Play Store. Since the Play Store is developed and owned by Google, scams damage the integrity of the tech giant. Fortunately, the company has since identified the scammers and filed a civil lawsuit against them in New York federal court.
Scammers trick Google into hosting fake encryption apps
Google tries to safeguard users from harmful apps by implementing measures to check apps and make sure they are safe to download. Even then, there is a possibility of some malicious apps making their way into the Play Store and users’ devices. However, even if such apps are present in the App Store, Google continues to monitor them and removes them as soon as possible.
Even though Google did the same with this fake crypto app scam, the company found itself faced with an uncommon dilemma. Every time Google removed an app, another one took its place. The cycle continued until Google had to remove 87 fake crypto apps and waste $75,000 investigating scams. The $75,000, however, allowed Google to recognize the culprits and take action against them.
The apps appeared to be legitimate cryptocurrency exchanges and investment platforms, but were created to steal cryptocurrency. The two app developers who developed the apps were based in Shenzhen, China, and Hong Kong. According to Google, the two used YouTube and text messages to market their app and lure unsuspecting victims.
Over 100,000 people have fallen victim to the scam
In their civil suit, Google claimed that the two scammers managed to defraud over 100,000 people worldwide. Google also said each victim lost anywhere from $100 to tens of thousands of dollars.
On the other hand, this incident has called into question the integrity of Google. The term “integrity” was mentioned dozens of times in the document, which Google understandably appreciates how it appears to consumers.
In Google’s defense, crypto app scams are not new or unique. Apple has faced similar problems. A recent example is when a faux leather wallet app on the App Store stole over $120,000 from users. With how important it is Crypto wallets and apps are for those who trade digital currency, users must take every step possible to protect their digital assets.