Google has filed a lawsuit against two app developers, accusing them of participating in an “ international online investment fraud scheme .” According to the company, the scammers tricked users into downloading fake apps from the Google Play Store Android and other sources and stole their money by promising them profits.
The two app developers are Yunfeng Sun (aka Alphonse Sun) and Hongnam Cheung (aka Zhang Hongnim or Stanford Fischer), who are believed to be based in Shenzhen and Hong Kong, respectively.
The two are said to have managed to sneak around 87 crypto apps onto the Play Store. Combined with social engineering, they managed to convince over 100,000 users to download them.
See also: Investment scams are on the rise – Thousands of fake sites
“The app earnings were fraudulent,” Google says in the lawsuit. “And the scheme didn’t end there. Instead, when individual victims attempted to withdraw their balances, the defendants and their associates demanded various fees and other payments that were supposedly necessary for the victims to recover their principal investments and alleged earnings.
This type of fraud is known as pig butchering (or shā zhū pán), but Google said it “neither adopts nor supports the use of this term.”
In September 2023, the US Financial Crimes Enforcement Network (FinCEN) said that these scams are being perpetrated by criminal enterprises based in Southeast Asia and employing hundreds of thousands of people. In most cases, the scammers use elaborate virtual personas to target unsuspecting individuals via social media or dating. They try to establish a romantic relationship and gain the trust of the victims. Once they do, they convince them to invest in crypto portfolios that supposedly offer high profits in a short period of time. In reality, the scammers steal this money that the victims invest and give them nothing back.
To enhance the sense of legitimacy, scammers create realistic websites and mobile apps.
See also: New GoFetch attack on Apple Silicon chips steals crypto keys
According to Google, the two app developers sued lured victims in the US and Canada into downloading their malicious apps via messages . Other distribution methods include affiliate marketing campaigns and YouTube videos promoting the fake investment platforms.
The company described the malicious activity as persistent and ongoing, with the defendants “using a variety of computer network infrastructure and accounts to disguise their identities.”
It also accused them of violating the Racketeer Influenced and Corrupt Organizations Act (RICO), of committing fraud, and of violating the Google Play Terms of Service, Developer Program Policies, YouTube, and the Google Voice Acceptable Use Policy.
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“Google Play can continue to be an app distribution platform that users want to use to feel confident in the integrity of apps,” Google added in the lawsuit. “By using Google Play to conduct their fraud, defendants have threatened the integrity of Google Play and the user.”
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As users, we have unfortunately always been the main target for scammers. Techniques such as cloning legitimate apps and distributing them through phishing and storefronts have become easier than ever. The traps are often hidden in temporary apps and websites that offer supposed investment that disappear at the first opportunity, after having previously taken your money.
Protect yourself by staying alert! You should not provide personal information or take action based on investment advice you receive through social media. Mobile phones, texting and social apps increase the threat of online investment scams.
If, however, you find that you have shared financial information or transferred money, contact bank your. Modern banks have recovery procedures that can help in the event of fraud.
Finally, help others by reporting scams on social media and to the relevant authorities. By staying informed and spreading the word, we can all contribute to making the Internet safer for users.
Source: thehackernews.com
