How To Spot Fake Bitcoin And Cryptocurrency Apps

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Bitcoin is an exciting and potentially disruptive technology which has piqued the interest of many investors around the world.

Yet a lot of people dive headfirst into crypto investing without a clear idea of how to identify fake Bitcoin and cryptocurrency apps and other crypto scams.

Unfortunately, for every genuine Bitcoin app, there are potential hundreds of fake ones operating in the ecosystem.

Fake Bitcoin and cryptocurrency apps used to con people out of their cash can be convincing and spotting them can be difficult, especially if you’re new to the world of crypto and unsure what’s legit and what’s fake.

Worryingly, some of these fake apps can even be found in official app stores which can make them appear genuine.

However, there are often some fairly obvious giveaways, if you know what you’re looking for.

Here, I’ll look at some of the telltale signs that a Bitcoin or cryptocurrency app is fake.

Fake Bitcoin and cryptocurrency apps

Fraudsters often use fake apps as part of their scheme to scam people out of their cash and crypto.

They’re often designed to resemble legitimate crypto apps but are effectively ‘dummy’ apps that have no real functionality.

They’ll often show a ‘balance’ of the cash you’ve invested and fake profits that have been added.

But the profit isn’t real, and you won’t be able to withdraw your funds. Also, the wallet will be fake or under the control of the fraudsters.

Fake apps can be an effective tool for scammers, especially when the price of Bitcoin and crypto is increasing and people get caught up FOMO.

How fake crypto apps work

Victims are often lured into signing up for a fake crypto app after meeting someone online.

This may be through a dating website or, more commonly, after a random approach via a social media platform such as WhatsApp, Telegram or Facebook.

The victim’s new ‘friend’ or romantic interest will first build trust then turn the conversation to investing.

They’ll mention a crypto scheme they know of where members are making fantastic returns in a short space of time.

Often, they’ll claim that the investment is ‘risk free’, and that the more money invested the greater the profits.

The victim will be shown how to download a crypto app and transfer funds to it, often after they’ve sent cash from their bank to a legitimate exchange and converted it into crypto.

There is usually a social media channel connected to the app that purports to show lots of members chatting about how much money they’re making, but this is all part of the scam.

Fake crypto apps and pig butchering

This type of scam is often referred to as a pig butchering scam as it’s designed to ‘fatten up’ the victim before their money is stolen.

This usually happens then they come to withdraw their funds and find their account unexpectedly frozen.

On querying this with the scammers, they’ll be fed a story about a surprise tax, commission or other fee that needs to be paid before the cash can be transferred back to them.

Unfortunately, some people pay these extra fees but at no point do they get any money back – it’s all a ruse to get more funds from the victim.

I’ve come across many different ‘fees’ demanded by the scammers, including:

• Mining fees
• Capital Gains Tax
• Income Tax
• Regulator fees
• Analyst’s commission
• Account switch fee

Fake Bitcoin apps resemble well-known brands

One of the many tricks that the scammers employ is to use the name and branding of well-known companies on their apps to convince victims they’re real.

I’ve seen all types of company logos and names used, and often the scammer will give the app a name that closely resembles the company but with a subtle difference that may be easy to miss.

This is designed to trick the casual observer into believing they’re on a legitimate crypto app and that their funds are safe.

This tactic is often used if there’s a companion website presented as part of the scam.

The key is to double check URLs and names very carefully and look out for minor differences to the genuine brand name.

Fake app store crypto and Bitcoin apps

While official app stores work hard to remove fake apps, some still slip through the net.

But it’s not just the app stores that you have to be careful about.

Sometimes, the scammers offer an app as a directly downloadable .apk file through a scam website used as part of the fraud.

This means they can bypass the official stores and also potentially infect a user’s device with malware.

It’s not advisable to download any app outside of an app store without being absolutely certain it’s legitimate.

How to spot a fake Bitcoin and crypto app

As I’ve mentioned, there can be some obvious red flags that a crypto app is fake.

The same can be said about fake crypto websites offering directly downloadable apps.

Here are a few of them:

• Poor quality graphics and spelling mistakes in content.
• A domain name that was registered recently and as a low Domain Authority (DA) score.
• The app lacks functionality and many of the links don’t go anywhere.
• No contact information for the company or team supposedly behind the app.
• No social media profiles or reviews online.
• If the app is in the app store, it may have a low download count and may ask for excessive permissions to be granted when installed.

There are many other things you can check on both crypto apps and websites to help avoid scams.

Read my ultimate guide to spotting a crypto scam.

Genuine Bitcoin and crypto apps

There are many completely legitimate crypto apps offered by reputable companies, so don’t be put off from using them.

Just make sure you’re using a real app and not one designed by scammers.

Use the pointers above, and the resources listed below to help you make an informed decision while carrying out your due diligence.

Novelty fake Bitcoin and crypto apps

It’s not all doom and gloom – sometimes people just want to have a little bit of fun with a fake crypto app!

You’ll find prank apps in the app store which are designed to fool your friends and family into thinking you’re Bitcoin rich.

You can also show off your ‘transactions’ and Bitcoin ‘balance’ to anyone you’re trying to impress simply by setting the figures yourself.

These apps clearly marked as fake, and the description will state what they’re designed to do.

You can use them to ‘send’ and ‘receive’ as much Bitcoin as you like to give the impression you’re a crypto trading wizard.

Final word

It’s vital that you do your own due diligence when looking to invest in any platform. Make sure you’re engaging with a genuine app before parting with your cash.

If you still have concerns and need a potentially fake Bitcoin app or website checked out, or have been caught up in a scam, we can help.

Take a look at our advice services page for further details.

Related post: Crypto scam help and resources