Fake cryptocurrency apps on the Google Play Store

Scammers are constantly seeking new ways to steal your money, and the recent explosive growth of cryptocurrencies has made fraud more common. According to research by blockchain Intelligence Company, Chain analysis, scammers stole $14 billion in cryptocurrency in 2021, setting a new record for the crime.

Malicious apps that targeted Android users interested in cryptocurrencies have been discovered in Google’s official Play Store. More than 170 Android apps that advertise mining cryptocurrencies for a fee but are actually scams have been found by researchers.

25 of these 170 apps were available on Google Play. Before Google banned them, these apps were able to deceive a lot of people. So far, these apps have defrauded customers out of $350,000.

These apps are primarily used since they manage to escape all detection and checks, and they don’t do anything that would set off automatic policy compliance checks.

What does the cryptocurrency app description say?

According to the app’s description, users will initially be able to mine cryptocurrency for free but to add more mining capabilities, users will need to pay. However, in practice, it never operates in the manner that is promised.

These apps don’t have any features or connections to cloud mining operations, but some of them ask users to pay extra for more powerful mining capabilities via in-app charging systems that can cost anywhere from US$14.99 to $189.99.

According to Trend Mic, the Daily Bitcoin Rewards – Cloud Based Mining System software encourages users to increase their cryptocurrency mining capacity by “purchasing” their preferred mining equipment to earn more coins more quickly.

Eight cryptocurrency apps in particular are;

• Bitcoin 2021
• Bitcoin Miner – Cloud Mining
• Bitcoin (BTC) – Pool Mining Cloud Wallet
• BitFunds – Crypto Cloud Mining
• Crypto Holic – Bitcoin Cloud Mining
• Daily Bitcoin Rewards – Cloud-Based Mining System
• Ethereum (ETH) – Pool Mining Cloud
• MineBit Pro – Crypto Cloud Mining & BTC miner

These malicious programmes “trick consumers into watching adverts, paying for subscription services with an average monthly charge of US$15, and paying for improved mining capabilities without getting anything in return,” according to Trend Micro.

Cybersecurity Report

The cybersecurity company claimed that despite this, “many alarming applications of the same sort” can still be found on Google Play when searching for the term “cloud mining,” and some of these apps have even had more than 100,000 downloads.

According to the company, some programs, including Bitcoin (BTC) – Pool Mining Cloud Wallet and Bitcoin 2021, have harmful features and interfaces that are overrun with advertisements. Users are instructed to click on advertisements to demonstrate that they are human beings and are then told that they can begin mining after watching video advertisements within the program.

Additionally, they are “told to view in-app video adverts to boost mining pace.”For some apps to unlock the withdrawal interface, users must “encourage multiple friends to download the app,

Fake Mining Apps

One of two fake mining apps—android FakeMinerPay or android FakeMinerAd from Trend Micro—hidden in the majority of these apps trick users into paying for phoney cloud mining services, typically at a $15 recurring monthly price. Actually, none of the apps mined any cryptocurrencies or gave consumers any cryptocurrency payments.

At least two of the applications—Crypto Holic and Daily Bitcoin rewards—were premium apps that users had to pay to acquire. Some of them also promoted paid advertisements and additional in-app purchases.

Fake Digital Wallets

Researchers from the security company ESET have found a total of two fake digital wallets. Users could create wallets for a wide variety of cryptocurrencies using the initial one, named Coin Wallet.

While Coin Wallet advertised that it would provide a special wallet address for any user who wanted to deposit money, there were actually 13 wallets utilized by the developer for all supported currencies. The identical wallet address for a particular coin was given to every Coin Wallet user.

According to the program, users can build wallets for a variety of cryptocurrencies,” said Lukas Stefanko, an ESET malware researcher, in a blog post.

However, its true objective is to deceive victims into sending cryptocurrency to the attackers’ wallets—a classic instance of what we previously referred to as “wallet address frauds” when studying malware that targets cryptocurrencies.

Fake Wallet – Trezor Mobile

A second fake Android wallet attempted to spoof the well-known hardware bitcoin wallet Trezor by using the moniker “Trezor Mobile Wallet.” Users were then instructed to provide their login information, which was then transferred to a server under the developers’ control.

Real Trezor wallets have multiple security levels that prohibit any credentials from being used to access valid accounts. Still, phishing attacks may use any email addresses or other sensitive information.

Stefanko claimed that the name, developer name, app category, app description, and photos all gave the impression that the fraudulent Trezor app listing on Play was reliable. Additionally, it came up as the second result when you typed “Trezor” into Play.

However, it was quickly recognized as a fake after installation. The icon displayed on mobile devices was noticeably different from the actual Trezor program and even had the words “Coin Wallet.” It is simple to understand why it was identified as a fake in this Reddit forum post from May 12.

Stefanko claimed that on May 1st, the app was published to Google Play. When it was exposed as a phoney, a Reddit member claimed it had “50+ downloads.”

The same domain, coinwalletinc.com, was used by both programs. Both apps were later removed from Play by Google.

Other cryptocurrency scams

Some of the cryptocurrency scams are the following.

Fake cryptocurrency websites

In order to deceive their victims, scammers may develop phoney cryptocurrency trading websites or imitations of legitimate cryptocurrency wallets. These phoney websites frequently have domain names that are somewhat similar to those of the real websites they are meant to imitate.

It can be challenging to distinguish them from authentic websites since they resemble them so closely. One of two things happens when a webpage is a fake cryptocurrency;

• As with phishing pages, all the information you provide, including your crypto wallet’s password, recovery phrase, and other financial credentials, is obtained by fraudsters.
• Take theft as an example: You might be able to withdraw a little sum of money at first through the website.
• You might increase your investment in the site as your current investments appear to be doing well. However, the site either closes down or rejects your request when you later wish to withdraw your money.

Phishing cryptocurrency scams

Online wallet information is a common target of cryptocurrency phishing scams. Private keys for crypto wallets, which are needed to access the wallet’s funds, are the target of scammers. They operate in a similar way to previous phishing scams and are associated with the fictitious websites mentioned above.

To entice recipients to a specifically designed website where they are asked to provide private key information, they send an email. The cryptocurrency in those wallets is then stolen by the hackers once they know this information

Pump and dump schemes

Through an email blast or social media sites like Twitter, Facebook, or Telegram, con artists will hype up a certain coin or token. Tradesmen hurry to purchase the coins because they don’t want to miss out, which raises the cost. After successfully driving up the price, the con artists liquidate their shares, which leads to a crash as the asset’s value rapidly drops. This can occur in a matter of minutes.

Fake cryptocurrency apps

Scammers frequently use bogus apps that can be downloaded from Google Play and the Apple App Store to deceive cryptocurrency investors. These bogus apps are swiftly identified and taken down, but that doesn’t mean they aren’t having an effect on many bottom lines. Numerous people have downloaded phoney cryptocurrency applications.

Fraudulent initial coin offerings (ICOs)

Initial coin offerings, or ICOs, are a mechanism for budding cryptocurrency businesses to solicit funding from potential customers. Customers are frequently given the option to send active cryptocurrencies like bitcoin or another well-known cryptocurrency in exchange for a discount on the new crypto coins.

Many initial coin offerings (ICOs) have proven to be fraudulent, with criminals making elaborate efforts to defraud investors. Examples include hiring up bogus offices and producing upscale marketing materials.

Blackmail and extortion scams

Blackmail is another technique scammers employ. They send emails threatening to reveal the user’s history of visiting adult websites unless the recipient shares their private keys or transfers money to the scammer.

Cloud mining cryptocurrency scams

Cloud mining refers to businesses that let you rent mining equipment they run in return for a set charge and a percentage of the profits you will allegedly make. Theoretically, this enables anyone to mine remotely without investing in costly mining hardware.

In contrast, a lot of cloud mining businesses are frauds or, at best, unproductive, causing you to lose money or make less than expected.

Fake celebrity cryptocurrency endorsements

To attract potential targets, cryptocurrency scammers occasionally adopt celebrity, corporate, or influencer personas or make claims about endorsements from these individuals. This occasionally entails marketing fake cryptocurrency to unsophisticated investors. Sophisticated websites and pamphlets that purport to have celebrity endorsements from well-known figures like Elon Musk are sometimes used in these scams.

Giveaway cryptocurrency scams

In what is known as a giveaway scam, the con artists here claim to equal or multiply the cryptocurrency handed to them. Clever messaging from what frequently appears to be a legitimate social media account can engender a sense of legitimacy and urgency.

People may send money rapidly in the hopes of receiving an immediate return because this opportunity is supposedly a “once in a lifetime” chance.

How to find fake cryptocurrency app

Look out for the following warning signs;

A weak or nonexistent whitepaper:

A whitepaper is one of the most critical components of an initial coin offering, so every cryptocurrency should have one. The cryptocurrency’s design and operation should be covered in the whitepaper. Be cautious if the whitepaper doesn’t make sense or, worse yet, doesn’t exist.

Guaranteed returns

Because investments can go up as well as down, no financial investment can guarantee future returns. Any cryptocurrency offering that makes a guarantee that you will profit is a warning sign.

Excessive marketing

Every company advertises itself. But investing heavily in marketing, like as internet advertising, paid influencers, offline promotion, and so on, is one way that cryptocurrency scammers draw people in.

This is intended to reach as many people as possible in the quickest amount of time and to quickly raise money. Consider stopping and doing more study if you think a crypto offering’s marketing is pushy or makes grandiose claims without any evidence.

Unidentified team members

It should be possible to identify the primary individuals behind the majority of investment businesses. This typically entails accessible bios of the investment’s managers as well as a vibrant social media presence. Be wary if you can’t identify the owner of a coin.

Free Money

Any investment opportunity that claims to offer free money, whether in fiat currency or cryptocurrency is probably a scam

Verifying identity by getting in touch with service

If unsure about an application, getting in touch with support via the business’s official website may help you prevent suffering financial losses as a result of fraud.Furthermore, a company’s official website is where users can download legitimate software.

Since the technology that supports cryptocurrencies is very new, there will inevitably be learning curve issues with usage and adoption. Sadly, employing bogus cryptocurrency apps, black hats have lately attacked gullible crypto enthusiasts.

While the issue is expected to last for a while, closer examination by tech companies is probably going to have a long-term calming effect.

Application Permission

Apps that are fake frequently ask for more permissions than are required. This makes sure they get as much information as they can from the victims’ devices. Users should be aware of programs that demand privileged access to the device administrator or other off-centre permissions.

Such authorizations might grant hackers unrestricted access to a device and enable them to gather private information that might be used to open financial accounts, including cryptocurrency wallets. The privacy settings of a phone system can be used to disable intrusive app permissions.

No of Downloads

The number of downloads an app has typically served as a measure of its popularity. Numerous reviews and millions of downloads are normal for apps from trustworthy developers. Contrarily, programs with fewer than 3,000 downloads need to be scrutinized more closely.

Spelling & Description:

Examining the spelling and symbol of an app is another step in determining its authenticity. The name and symbol of fake apps frequently resemble those of authentic ones, but something is usually amiss.

For instance, if the developer or program name is misspelt, the software is probably fake. A brief online search regarding the app will assist in establishing its validity.

A Google Editor’s choice badge for the app should also be taken into account. The Google Play editorial team awards the badge to developers and apps that meet very high standards. It’s doubtful that apps with this mark are bogus.

How to avoid being tricked by cryptocurrency scams

Here are some tips by which we can protect ourselves from crypto scams.

• Do your investigation

The most widely used cryptocurrencies are not scams. However, if you’ve never heard of a specific cryptocurrency, do some research on it. Check to see if there’s a whitepaper you can read, learn who controls it and how it functions, and check for real reviews and endorsements. To check for scams, find an accurate and reliable list of bogus cryptocurrencies.

• Is it too good to be true

Businesses that guarantee returns or claim to make you wealthy overnight are probably scams. Be cautious if something sounds too good to be true.

Last but not least, never use the money you can’t afford to lose on an investing opportunity. Understanding the risks is crucial because cryptocurrency is speculative and volatile even if you aren’t being scammed.

• Beware of social media advertisement

Crypto scammers frequently advertise their fraudulent schemes on social media. They may utilize unlicensed pictures of famous people or prominent entrepreneurs to give the impression of credibility, or they may make promises of freebies or free money. When you see cryptocurrency prospects touted on social media, keep a healthy dose of scepticism in mind and conduct your research.

• Avoid cold calls

It’s certainly a fraud if someone reaches you unexpectedly to sell you a cryptocurrency investment opportunity. Never give anyone who contacts you in this way your personal information or money.

• Only download programs from legitimate stores

Although phoney apps may end up in the Apple App Store or Google Play Store, these are the only places where you should ever download apps.

• Keep an eye on your wallet app

When sending money for the first time, send a little amount to verify the app’s validity. If you observe strange behaviour while updating your wallet app, stop updating and delete the app.

• Just invest in items you are familiar with

It is important to take a break and conduct additional studies if you are unsure of how a specific cryptocurrency operates before deciding whether or not to invest.

• Take your time

Scammers frequently employ high-pressure techniques to persuade you to spend your money right away, such as by making bonuses or discounts if you do so immediately. Before making any purchases, take your time and do some independent research.

• Save your wallet

A wallet with private keys is required to invest in cryptocurrencies, so keep it secure. It’s quite likely fraud if a company requests your keys so you can take part in an investment opportunity. Secure the keys to your wallet.