The pace of technological growth understandably excites people and businesses alike. In the realm of investments and banking, an app-driven world coupled with the emergence of cryptocurrency opens up many new avenues for investments and opportunities for financial institutions to provide mobile banking and investment services via mobile apps.
The excitement generated by these changes also extends to cybercriminals. Wherever there is money, there is the opportunity to swindle people out of their savings. This article examines the current cybersecurity situation in light of a recent FBI warning about fraudulent crypto investment apps.
Fraudulent Crypto Investment Apps: An FBI Warning
When cyber threats demonstrate a repeated pattern of damage over time in a specific industry, the FBI often releases Private Industry Notifications (PINs) to warn of the danger. In July 2022, an FBI PIN addressed the rise of fraudulent crypto investment apps. According to the warning, 244 victims were impacted with a total loss of $42.7 million.
But how exactly are cybercriminals conning people out of such large amounts? Typically, a lone wolf actor or threat group creates a seemingly legitimate crypto investment app. The tactics deployed involve using the same name, logo and branding as legitimate investment platforms run by various financial institutions. Additionally, typosquatting tactics help perpetrators create websites that only slightly deviate from a real financial institution’s…
