A malicious cryptocurrency wallet application on the Google Play Store has siphoned $70,000 from users. The app was downloaded 10,000 times over five months.
Cybersecurity firm Checkpoint Research (CPR) uncovered the scheme. The malware posed as an app for WalletConnect, a protocol linking crypto wallets to decentralized applications.
WalletConnect does not have an official app, and scammers exploited this fact to target confused users.
"Inexperienced users might think WalletConnect is a separate wallet app," CPR explained. This misconception led victims to search for and download the fake app. The malicious "WalletConnect – Crypto Wallet" appeared at the top of Google Play search results. It leveraged the trusted WalletConnect name to lure victims.
Over 150 users fell prey to the scam. The attackers employed social engineering and technical manipulation to execute their plan.
CPR noted the sophisticated nature of the operation. "They capitalized on a well-known name and exploited user confusion," the firm stated.
The scammers accumulated significant cryptocurrency without raising immediate alarms. They achieved this through clever tactics and exploitation of user trust. Unlike typical crypto scams, this exploit used smart contracts and avoided conventional attack methods such as keyloggers.
The incident highlights the ongoing security challenges in mobile app stores. It underscores the need for vigilance when downloading cryptocurrency-related applications.