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Crypto scams are not new, and many unsuspecting people new to the crypto scene have become victims of them. According to the FBI’s internet crime data, crypto scams cost Americans $2.3 billion in 2022. The FBI also warned Americans of crypto frauds being rampant on LinkedIn in the same year.
Recently, Google investigated and caught two scammers who fraudulently took money in the guise of crypto apps through the Play Store. Since the Play Store is developed and owned by Google, the scams hurt the tech giant’s integrity. Fortunately, the company has since identified the scammers and filed a civil lawsuit in New York federal court against them.
Scammers trick Google into hosting fake crypto apps
Google tries to safeguard users from harmful apps by implementing measures to check apps and confirm they are safe to download. Even then, some possibility exists of certain nefarious apps making their way onto the Play Store and user devices. However, even if such an app is on the app store, Google continues checking and removes them as soon as possible.
While Google did the same with this fake crypto apps scam, the company faced an off 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 waste $75,000 investigating the scams. The $75,000, however, enabled Google to recognize the guilty parties 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 based in Shenzhen, China, and Hong Kong. According to Google, the duo used YouTube and text messages to market their app and lure unsuspecting victims.
Over 100,000 people fell victim to the scam
In their civil lawsuit, Google alleged that the two scammers managed to con 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. There was a mention of “integrity” dozens of times in the filing, as Google understandably values how it looks to consumers.
In Google’s defense, crypto app scams aren’t new or unique. Apple has faced similar issues. A recent example is when a fake Leather Wallet app on the App Store stole over $120K from users. With how important crypto wallets and apps are for those who trade digital currency, users must take every step possible to protect their digital assets.