Crypto scams have increased dramatically in the last couple of years. Social media bitcoin scams and fake ICOs are common varieties. In addition, cryptocurrency products, such as mining apps can rob clients of money and never delivered their promised service. Recently, researchers at the Lookout Threat Lab have identified 170 Android crypto-mining apps as fraudulent.
Of these 170, 25 are sold on GooglePlay. Consumers who believe that everything sold on GooglePlay or Apple Store is safe may be lured into a false sense of security.
To be fair, GooglePlay removed these apps once they were found to be fraudulent, but there is no guarantee that more on the platform may not be found to be fake. It is important to check the mining app before purchasing.
These apps lured those interested in cryptocurrency to get involved in mining the asset and charge a fee for the service only to refuse to deliver on these services or not allowing customers to withdraw their funds.
Whether you are dealing with a crypto scam, a forex scam, or a disagreement with a broker or merchant, fund recovery may be your goal. It is important to report the fraud to authorities and to enlist the aid of a fund recovery service to try to retrieve your funds.
Trader Defense Advisory experts consult with people who have lost money through a crypto scams, hacking, or a forex trading scam. Contact TDA experts who are experienced in dealing with all types of scams and can help you with every phase of fund recovery.
What is Crypto Mining and What Does it Have to Do with Crypto Scams?
Although crypto scams try to make cryptocurrency sounds easy, crypto mining actually is complex and involves intense operation and energy. Crypto mining involves doing extremely complicated mathematical problems on state-of-the-art computers.
The energy required to solve these problems can be expensive and can leave a significant carbon footprint. However, those who are successful with the mining process are rewarded with crypto coins. Given the current valuation of cryptocurrencies, crypto coins can be quite valuable and as of July 2021, each bitcoin is worth $31,170.
The complexity, expense, and amount of energy expended on data mining seems oversimplified on these fake crypto mining apps. A thorough analysis of the fake crypto-mining apps shows that they have a similar type of code and design. To capture the complexity of data mining, legitimate apps have complex code and they may vary in their design.
There are various types of fraudulent products. Some apps contain malware or spyware that is injected into user devices to extract data. Others are meant to be actual data mining apps but they do not work properly.
Most of the fraudulent apps that were discovered in the Lookout Threat report did not have malware and were not defective versions of actual apps, but were not designed to do anything at all but offer false information.
The one thing these apps do effectively is collect upfront fees or offer subscriptions to new customers. Because they offer the Google Play in-app billing system, they can create a false impression of legitimacy.
The app will then present false information to the user about the progress of data mining and how many coins the user has. The number of coins that are generated are kept low to encourage people to upgrade their service. These upgrades can cost between $21 to $225.
The creators of this crypto scam are determined to prevent any customers from withdrawing their money. They will either manipulate the number of coins earned or create a pop-up message that they have not reached the maximum amount needed to withdraw their coins. They will then be encouraged to further upgrade their accounts and tools with the false hope of mining more coins.
The takeaway is that the most common types of data mining app crypto scams feature tools that do nothing but accept money from users, display false information and encourage them to keep making upgrades, or spending more money. These fake apps will also prevent these customers from making withdrawals.
How to Avoid Crypto Mining App Scams
There are so many crypto scams and mining app frauds out there that some may wonder if cryptocurrencies are worth getting involved in. However, just like the internet itself, a place where there are many dangers, crypto apps can be safe if you take precautions. Here are some things to keep in mind.
- Find out who developed the app
- Download the app directly from the developer’s store
- Look at terms and conditions carefully
- Read reviews from trusted technology publications
- Beware of suspicious issues, such as changing coin amounts, sudden crashing
One of the best ways to validate the authenticity of any service is to find out information about who developed it. This requires some research, but it is worth the effort. Since there are many fraudulent apps are sold on GoogleApps and Apple Store, it is best to purchase the app directly from the developer’s website.
Read through terms and conditions carefully. Fake apps may not even have terms and conditions, so avoid any product without these. Reviews can be a guide towards reliable products, but keep in mind that some review sites may have fake reviews. Check out reviews on trusted technology sites.
Fake apps will reset the coin amounts, crash frequently, or will ask the user for permissions for things that an app doesn’t need to access. If you have been had money stolen by a fake crypto mining app or other crypto scams, it is essential to report the incident and seek advice from a fund recovery service.
Has Your Money Been Stolen by a Crypto Scam, Talk to TDA Experts Today
If you have been cheated by a crypto scam, contact Trader Defense Advisory. Our team of experts has vast combined experience dealing with identity theft, forex trading scams, crypto scams, and other scams. Consult with us and we will create a claim and help you get started on the path to retrieving your funds.