Deceptive Digital Yuan App Caught Harvesting User Data, Authorities Warn of Rising Crypto Scams
Summary:
Chinese authorities have exposed a fraudulent app that imitates the digital yuan app, according to a post on WeChat by the Ministry of Industry and Information Technology Anti-Fraud Special Class. The deceptive app not only shows misleading ads but also collects sensitive user information. Despite subtle differences in logo, user interface, name, version numbers, and MD5 message-digest identity, it closely resembles the authentic app. This case is reminiscent of similar scams discovered in 2021 and 2022, emphasizing the need to raise awareness of digital currency abuse.
A fraudulent application imitating the digital yuan has been detected, as per a WeChat update from the Anti-Fraud Special Class of the Chinese Ministry of Industry and Information Technology. Despite bearing a striking resemblance to the legitimate version, the counterfeit program has notable variations. Besides serving misleading advertisements, it purportedly harvests confidential user data. The fake app's purported customer support directs unsuspecting users to unusual communication platforms, enabling fraudulent access to users' assets, said the ministry.
The dubious app sports a logo resembling that of the genuine digital currency app, albeit with slight differences. Additionally, it has a distinctive user interface, name, version number, and MD5 message-digest identification, deviating from the legitimate application. Details regarding the entities responsible for the illicit operation or any steps being taken to curb it remain undisclosed.
This fraudulent digital yuan app isn't the first of its kind. Similar scams were identified in 2021 and 2022. Zhou Xiaochuan, the former Governor of the People's Bank of China, expressed concern over such fraudulent activity during the 2023 China (Beijing) Digital Finance Forum on October 13. He cautioned that as technology becomes increasingly accessible and user-friendly, it is being exploited more frequently and conveniently.
Although China strongly opposes cryptocurrency, it has witnessed several substantial illicit activities involving digital assets. In December, an operation that used digital currencies to illegally move $2.2 billion out of China was convicted. The fight against cryptos is justified by Chinese authorities as a bid to prevent data theft and money laundering, but many see it as an effort to prevent capital outflows. The digital yuan recorded a transaction volume of $250 billion in 2023.
Later in the year, in a civil case involving an investment disagreement, a Chinese court seized a digital yuan wallet.
Published At
2/27/2024 12:35:24 AM
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