In today’s digital world, mobile devices have become an integral part of everyday life. Gadgets give us unprecedented access to information, entertainment and financial transactions. However, along with these benefits come new cybersecurity risks. One of the most pressing threats is scam schemes targeting users’ mobile devices.
Attackers use a variety of deceptive methods, from phishing sites and malicious apps to phone number spoofing.
To protect yourself and preserve your assets, you need to first understand what types of scams exist. If you know how to recognize and counter them, you can avoid losing money.
Counterfeit apps
In the cryptocurrency industry, one of the most common threats are fake apps that fraudsters «pretend» to be popular exchanges, wallets, and other services. This malicious software is created with one goal in mind — to trick gullible users and steal their assets or personal data.
Fake crypto exchanges apps
Popular cryptocurrency exchanges are often targeted by cybercriminals. For example, in 2018, several fake apps mimicking the Poloniex exchange appeared on Google Play. Some users who installed such fake apps entered their logins and passwords, which then ended up in the hands of scammers. As a result, all crypto assets were stolen from their accounts.
How to protect yourself from this type of fraud?
- Always download applications only from official exchange websites — ignore third-party resources.
- Study user reviews. A suspiciously large number of negative reviews is an alarming signal.
- Check the developer of the application, its name should coincide with the name of the real exchange.
- Pay attention to the number of downloads — the top exchanges will have millions of downloads.
- Activate two-factor authentication in your exchange account for additional asset protection.
Fake cryptocurrency wallet applications
Another popular type of scam is fake cryptocurrency wallets. Their goal is to obtain users’ personal information, such as passwords and private keys.
In 2021, 13 malicious apps posing as Jaxx Liberty wallet were discovered on Google Play. Once installed, this malicious software stole secret seed phrases from users’ real wallets. As a result, the scammers gained full access to other people’s cryptocurrency accounts. Google has since removed these apps, but they can still be found on third-party sites.
How not to become a victim of scammers? Here are the main rules:
- Use only verified mobile wallet apps from official developer websites.
- The first time you launch such an application, you should receive a new public address and private key for your wallet. If you are immediately offered a «ready-made» wallet — it’s a fake!
- After installing the app, always check if you can access the available funds.
- Use only trusted wallets with a good reputation and preferably open source.
- For added security, import your keys to an offline computer without internet access.
Vigilance is your best friend in the fight against cryptocurrency scammers. Follow these simple rules and your digital assets will be safe!
Hidden mining (cryptojacking)
Another common fraudulent scheme is hidden mining, also known as cryptojacking. This form of cyberattack attracts attackers with its relative ease of implementation and the possibility of stable illegal earnings. And although the processing power of smartphones is inferior to PCs, mobile gadgets are increasingly becoming the target of cryptohackers.
In order to mine cryptocurrency through your smartphone, attackers create virus-infected applications that are then distributed under the guise of ordinary games, office programs or educational aids. In fact, this malicious software works in the background, consuming the power of your gadget to mine coins.
There are also applications that are advertised as legitimate mobile miners, promising users earnings. But in fact, all the income from mining coins goes to the developers. And hackers are becoming more and more inventive, introducing advanced mining algorithms into their software, which are difficult to detect by anti-viruses.
Cryptojacking is very dangerous for smartphones and tablets. It significantly reduces the gadget’s performance, wears out the processor and drains the battery.
Here are the main tips to keep your mobile device safe:
- Download apps only from official stores like Google Play or Apple Store. Apps from questionable sources often contain cryptojacking code.
- Monitor your smartphone’s performance. Rapid heating and battery drain can signal hidden mining. Find and remove infected programs.
- Update your gadget’s operating system and apps regularly.
- Use browsers with cryptojacking protection or put extensions like AdBlock or MinerBlock.
- If possible, install a quality mobile antivirus and don’t forget to update it.
Hidden mining is a serious threat to the performance and security of your gadget. Be vigilant and your smartphone will be safe!
Clipper viruses
One of the most insidious threats to users are clipper viruses. These malware specialize in stealing your assets by cleverly spoofing crypto addresses on the clipboard.
Here’s how it works. When you copy a wallet address to transfer, the infected device stealthily spoofs it with the fraudsters’ address. As a result, even though you copied the correct recipient address, the money is still sent to the attacker’s wallet.
Securing yourself from clippers isn’t easy. But there are a few ways to protect your crypto savings:
- Carefully double-check the recipient’s address before transferring. It’s better to verify it in its entirety rather than in part — some clippers use addresses very similar to the original one.
- Use QR code authorization instead of manually copying/pasting addresses.
- Install a reliable antivirus with up-to-date databases on your gadget and keep it updated.
- Disable address autofill in crypto wallets and exchanges — clippers often use this feature.
- If possible, use a separate device exclusively for working with cryptocurrencies in a «safe environment».
Clippers are a relatively new but rapidly growing threat. Detecting and disarming this software in time is vital to avoid losing assets irrevocably.
SIM card swapping
SIM card swapping is also considered a dangerous type of crypto fraud. In this scheme, attackers use various social engineering techniques to trick employees of mobile operators and obtain a new SIM card that completely duplicates your phone number.
Once the attackers have your number, they can easily bypass any two-factor authentication (2FA) systems tied to it. This gives them the ability to hack into crypto wallets and exchange accounts without hindrance.
Another popular method is intercepting SMS with one-time codes for 2FA. Thanks to bugs in telecom networks, hackers can «catch» these messages and get your data.
The main feature of these scams is that the victim doesn’t need to take any special actions. Attackers simply deceive the service provider and get full access to your phone number.
How to protect yourself from this threat:
- Use apps like Google Authenticator or Authy instead of SMS authentication. Hardware security keys like YubiKey or Trezor are also a great option.
- Don’t post personal information like your cell phone number on social media. This will make it easier for fraudsters to spoof your SIM.
- Don’t publicize the fact that you own cryptocurrencies, as this will make you a potential target for attacks. If you do disclose this information, don’t disclose other details like the crypto services you use.
- Agree with your mobile operator on additional account protection measures: enter a PIN-code for SIM change, agree that SIM-card change is possible only in your personal presence, etc.
Fake WiFi networks
Another popular scam scheme in the world of mobile devices is the creation of fake WiFi networks under the guise of legitimate hotspots.
How it works. Criminals deploy fake networks in public places: cafes, airports, shopping centers. They come up with attractive names similar to the real ones («FreeWiFi», «Airport_WiFi»), which gullible users easily fall for.
Here are tips to protect your device from fake WiFi hotspots:
- Examine network settings before connecting. Avoid networks with a suspicious or obscure name.
- It is highly recommended to use a VPN service to encrypt your traffic. This prevents your data from being intercepted.
- Update your operating system and applications on your gadgets in a timely manner. Developers regularly fix WiFi related vulnerabilities.
- Turn off WiFi when you are not using it. This will prevent accidental connections to unverified networks.
- For important financial transactions, including crypto transactions, use secure home WiFi or mobile internet.
Being cautious on public networks is key to cybersecurity.
Conclusion
Scammers are constantly coming up with new schemes to defraud. Old methods of protection like SMS codes for in-app authentication are no longer reliable — it is easy to intercept them.
Experts recommend more modern approaches to security, such as two-factor authentication methods.
Decentralized blockchain-based solutions are a good alternative to protect your data. They are more resistant to hacking as they don’t have a single point of failure. For example, decentralized VPNs are better at encrypting internet traffic.
In general, the safety of crypto assets requires a set of modern cybersecurity measures that stay ahead of sophisticated attacker strategies.
