FBI issues a warning to financial institutions and investors about crypto cybercrime


Since the end of December, the FBI has identified 244 victims of crypto-related criminality with an estimated loss of $42.7 million.

According to a document issued on July 18, the Federal Bureau of Investigation has identified 244 victims of different crypto-related cyber crimes with an estimated loss of $42.7 million.

The Bureau has warned individuals and institutions against cryptocurrency investing applications or “apps” that falsely purport to provide cryptocurrency investment services. The con artists persuade investors to download mobile applications with the names and logos of reputable financial institutions.

Between December 2021 and May 2022, fraudsters posing as genuine firms scammed about $3.7 million worth of assets from at least 28 victims.

“When thirteen of the twenty-eight victims sought to withdraw cash from the app, they got an email informing them that they had to pay taxes on their investments before withdrawing monies. The victims could not withdraw monies even after paying the alleged tax.”

The FBI advises investors and institutions to take preventative actions against these scams. Some of these procedures include informing clients about the behaviour and the steps they can take to report it, doing web searches for your company’s name and logo to see whether they are being used elsewhere, being suspicious of unsolicited offers to download applications, and confirming an individual’s identification before providing personal information or relying on their financial advice.

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