Sophos has revealed new information on a global bitcoin trading fraud that targets iPhone users via popular dating apps like Bumble and Tinder. “CryptoRom Fake iOS Cryptocurrency Apps Hit US, European Victims For At Least $1.4 Million,” according to a report describing the newest findings.
“The CryptoRom scam relies heavily on social engineering at almost every stage,” said Jagadeesh Chandraiah, a senior threat researcher at Sophos.
He added, “First, the attackers post convincing fake profiles on legitimate dating sites. Once they’ve made contact with a target, the attackers suggest continuing the conversation on a messaging platform. They then try to persuade the target to install and invest in a fake cryptocurrency trading app. At first, the returns look very good but if the victim asks for their money back or tries to access the funds, they are refused and the money is lost. Our research shows that the attackers are making millions of dollars with this scam.”
Demonstrates that the operation has progressed. The attackers have broadened their scope from Asia to encompass persons in the United States and Europe. Sophos discovered an attacker-controlled Bitcoin wallet containing roughly $1.4 million in bitcoin purportedly acquired from victims. The threat has been dubbed “CryptoRom” by Sophos researchers.
“Until recently, the criminal operators mainly distributed the fake crypto apps through fake websites that resemble a trusted bank or the Apple App Store,” said Chandraiah.
He added, “The addition of the iOS enterprise developer system introduces further risk for victims because they could be handing the attackers the rights to their device and the ability to steal their personal data. To avoid falling victim to these types of scams, iPhone users should only install apps from Apple’s App Store. The golden rule is that if something seems risky or too good to be true – such as someone you barely know telling you about some ‘great’ online investment scheme that will deliver a big profit – then sadly, it probably is.”
According to Sophos’ research, in addition to stealing money, attackers can also acquire access to victims’ iPhones. In this variant of the assault, cybercriminals employ “Enterprise Signature,” a software development method that allows companies to pre-test new iOS apps with a small group of iPhone users before submitting them to the official Apple App Store for evaluation and approval.
With the Enterprise Signature system’s capability, attackers can use their fraudulent crypto-trading apps to target bigger groups of iPhone users and get remote management control over their devices. As a result, the attackers may be able to do more than merely take victims’ cryptocurrency assets. For example, they might acquire personal information, add and remove accounts, and install and manage apps for harmful purposes.
To safeguard iOS and Android devices from cyberthreats, Sophos recommends that customers install a security solution on their mobile devices, such as Intercept X for Mobile. Additional protection, such as Sophos Home, should be installed on all home and personal computers.
SophosLabs Uncut has further details on the fraudulent bitcoin trading apps targeting iPhones, as well as other mobile threats discovered by Sophos.
