Crypto scams are nothing new and many unsuspecting people just getting into the crypto scene have fallen victim to them. According to the FBI’s cybercrime data, crypto scams cost Americans $2.3 billion in 2022. The FBI also warned Americans about crypto scams rampant on LinkedIn in the same year.
Recently, Google investigated and caught two fraudsters who fraudulently took money under the guise of crypto apps via the Play Store. Since the Play Store is developed and owned by Google, fraud damages the integrity of the tech giant. Fortunately, the company has since identified the fraudsters and filed a civil suit against them in federal court in New York.
Fraudsters tricked Google into hosting fake crypto apps
Google tries to protect users from harmful apps by implementing measures to verify apps and confirm that they are safe to download. Even then, there is some possibility that certain rogue apps will make their way into the Play Store and users’ devices. However, even if such an app is in the app store, Google continues to check and remove it as soon as possible.
While Google did the same with this fake crypto app scam, the company faced a dilemma. Every time Google removed one app, another would take its place. The cycle continued until Google had to remove 87 fake crypto apps and spend $75,000 investigating the scams. However, the $75,000 allowed Google to identify the culprits and take action against them.
The apps looked like legitimate cryptocurrency exchanges and investment platforms, but were created to steal cryptocurrency. The two app developers who developed the apps were located in Shenzhen, China and Hong Kong. According to Google, the duo used YouTube and text messages to advertise their app and lure unsuspecting victims.
Over 100,000 people have fallen victim to fraud
In its civil lawsuit, Google stated that the two fraudsters managed to defraud over 100,000 people worldwide. Google further claimed that each victim lost anywhere from $100 to tens of thousands of dollars.
On the other hand, this incident has put a question mark on the integrity of Google. The filing mentioned “integrity” dozens of times, since Google understandably values how that looks to consumers.
In Google’s defense, crypto app scams are neither new nor unique. Apple faced similar problems. A recent example is when the fake Leather Wallet app on the App Store stole more than $120,000 from users. Given how important crypto wallets and apps are to those who trade digital currency, users must take every possible step to protect their digital assets.