In our LATOKEN Blog, we regularly post about crypto scams and the ways to avoid them. Lately, the interest for crypto mining apps is growing. Some of them work through more comprehensive systems, but there are many apps that claim to help you mine crypto and make a fortune. In fact, in one of the recent posts on our Medium page, we talked about the disadvantages of using your smartphone to mine cryptocurrencies.
Recently, the mobile security firm, Lookout, announced that there are 170 apps that are promoting themselves as a mining app. Lookout researcher Ioannis Gasparis reported that no actual cloud mining happens on these apps.
“Based on our analysis, they scammed more than 93,000 people and stole at least $350,000 between users paying for apps and buying additional fake upgrades and services,” said Gasparis.
There is no way for app stores to detect them, because these apps are not malicious and don’t steal data. They just collect money in exchange for *drum roll* nothing!
“In fact, they hardly do anything at all,” Gasparis explains how these scam apps make money. “They are simply shells to collect money for services that don’t exist.”
The “BitScam” group of apps take payment for subscriptions, services and in-app upgrades in Bitcoin and Ethereum tokens. Another group — “CloudScam” takes regular credit-card payments. Upgrades on this group cost as much as $250 for a “virtual hardware” package.
What happens if you want to withdraw your money, though?
Nothing. You will get nothing. These apps tell users that their balance is not high enough to process withdrawals. Essentially it is like throwing your cash to the ocean, chances are users won’t get back their money or any profit from it.
How can we avoid similar crypto scams?
Due to crypto being a relatively new phenomenon to the general public, it is very easy to make fake things look “legit.” Every crypto enthusiast wants to be a part of the crypto journey, and hey, we don’t blame them. We advise crypto readers to only use tried and tested platforms for mining, staking, trading crypto. For example, LATOKEN exchange is one of the exchanges that have been in the market for long enough to get its dedicated traders.
Currently, these apps are deleted from GooglePlay. But, similar crypto scams are likely to happen again due to increasing demand and interest for crypto mining. Stay up-to-date with different crypto scams follow us on LATOKEN on Medium, on LATOKEN Blog or LATOKEN VCTV channel.
LATOKEN, an international cryptocurrency exchange and IEO platform with over 1500 000 users across the world, is one of the few exchanges to list QNT tokens.
LATOKEN, a leading crypto exchange, makes investing and payments easy and safe worldwide. LATOKEN brings trading and banking to blockchain technology to automate transaction processing and save billions of work hours per year. A single year after its initial launch, LATOKEN got over 750k downloads on Google Play and over 1 000 000 followers on socials. Entrepreneurs looking for funding can consider the LATOKEN IEO Launchpad. There are 240+ digital assets available for traders with the option to connect using RESTful or WebSocket APIs on the LATOKEN platform. In addition, LATOKEN is planning to launch its own NFT Marketplace.
LATOKEN does not provide investment, tax, legal or accounting advice. This article is written for informational purposes only. Like many other assets, cryptocurrencies are subject to high market risk. Please trade with caution.