Scammers Hack into Bay Area Victims’ Phones to Access Photos, Cameras and Locations in Crypto Fraud
SAN FRANCISCO (KGO) – A new cryptocurrency scam in the Bay Area is plaguing victims with a new threat – taking control of their mobile devices. And the victims may not even know it.
It requires only one wrong click and your privacy may be exposed.
“It’s just been a nightmare,” said one Bay Area man who lost $1.2 million from the scam.
“I feel so bad for my family for what I did to them,” said the Bay Area software developer, who lost his retirement – $1.3 million.
RELATED: Bay Area Software Developer Loses $1.3M in Cash and Retirement in Popular Crypto Scam
Both are victims of a scam called Pig Butcher that is targeting Asian Americans in the Bay Area.
pig butcher
The scam begins when a suspect meets a victim on a dating website or social media platform and forms a fake relationship – symbolically making them fat like a pig – with the ultimate goal of getting the victim to invest in crypto. . But, unlike traditional romance scams, this hoax is far more advanced. Investigators say fraudsters often seek out their victims with the aim of hunting down vulnerable people.
U.S. Secret Service Special Agent Sean Bradstreet reported that I-Team cases have tripled across California so far this year — specifically targeting victims in Silicon Valley.
“The criminal organization has certainly expanded,” Bradstreet said.
RELATED: Bay Area investors lose $1.2M in cryptocurrency scam as fraud cases triple across CA
new threat
Within the past few weeks, investigators say the scam is developing a new threat: fake malicious apps that give access to your personal information.
“They have a lot of access to your mobile device,” Bradstreet said.
Investigators have warned that scammers will send victims a link to a legitimate crypto trading app or platform – but upon downloading the app, the scammers are gaining access to their victims’ devices.
“The apps are very attractive … in some respects it looks just like any other app,” said Andrew Frey, a US Secret Service financial analyst. “A very solid plan here.”
The ABC7 News i-team sat down with the nation’s first “Digital Asset Technology Alliance” (DATA) by the US Secret Service to crack down on these crimes.
hacking into your personal data
Special Agent Frey explains that victims caught in this part of the scheme are downloading fake apps like “Coinbasebit” and “Kraken” – which are impersonating legitimate crypto-trading companies.
stephanie sierra: “What if you download the app?”
Andrew Frey: “First, you will need to grant different permissions on your phone.”
Those permissions are granted once you’ve downloaded the app – giving scammers the ability to remotely turn on your microphone or turn on your camera remotely.
And that’s access not only to your microphone and camera, but to most of your iPhone’s data — including your photos and your exact location.
“And it can be as accurate as the longitude and latitude of where you’re actually located at the time,” Bradstreet said.
Investigators say the suspects may also have the ability to read and write on your phone.
stephanie sierra: “Can they read and write on the phone?”
Sean Bradstreet: “Yeah, so some of the links you’re downloading and the fake and malicious apps have read and write capability and they have access to your email.”
RELATED: Bay Area Man Lost $380K Investing in Cryptocurrency Recommended by Woman He Met Online
red flags
In some cases, victims are provided with a URL to download the app via WhatsApp or text message. Investigators say the links would lead victims to fake sites like “Comexvtn.com,” which required them to login.
“The biggest red flag here is downloading any type of mobile app outside of the Apple App Store or the Google Play app store,” Frey said.
But, keep in mind that some apps and sites will try to trick you.
“Some sites look like the Apple App Store and will even have a rating and say it’s an Apple approved app with a high rating,” Frey said. “They’re getting more sophisticated.”
For example, some sites offer a customer service help line but the victims end up directly chatting with scammers. In other cases, it prompts a pop up asking if you’re downloading on iOS or Android to make it appear that the app or site is affiliated with the Apple or Google Play app stores.
And worst of all – if you accidentally download a fake app, it’s not easy to fix. Privacy violations can continue even after the app is deleted.
“You can’t just go in and delete the app and think it’s off your phone,” Bradstreet said. “At a minimum, you should reset your phone to factory settings.”
There is now a fear facing victims in the Bay Area.
“It is very difficult for my family,” said a local victim, who lost her life savings. “Every morning I wake up and it feels like a nightmare.”
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