Trezor iPhone Scammers Defraud Users of $600K Worth of Bitcoin

Trezor iPhone Scammers Defraud Users of $600K Worth of Bitcoin

Recently, the cases of hardware wallet scams have risen as fake crypto wallet apps have been ripping innocent users off their money. An unsuspecting victim has lost 17.1 BTC, an equivalent of $600,000 to a sham Trezor app advertised on Apple’s App store. In a desperate attempt to evade Apple’s assessment procedure, many fraudulent developers do edit their apps as soon as they’ve got approval from Apple. Recently, fake developers swindled an innocent user of 17.1 Bitcoin by cloning Trezor’s name and features of its hardware wallets. The stolen amount was worth $600K then but $1 million at present.

Trezor does not support Apple’s iOS

According to a Washington Post report, the victim, who was identified as Phillipe Christodoulou, having stored his Butcoin on a Trezor hardware wallet, decided to check his account balance. He installed an app he mistook for Trezor on the iOS Appstore. At the moment, Trezor does not support Apple’s iOS mobile operating system and has no mobile app. But the fake developer cloned the firm’s name and brand, awarding himself a user rating of 4.5 stars to look like a trustworthy app.

No sooner had Christodoulou installed the app and entered his account details than his account was wiped out. In his narrative of the incident, the victim lamented that “Having put my entire trust in Apple, they betrayed me. This case should not be left unattended.” It is noteworthy that this is not the first of such a case. Another Georgia-based crypto user, James Fajcz, was reported to have lost over $14,000 to a fake developer.

Is Apple really the most trustworthy marketplace for apps?

During his interview with Washington Post, an Apple official claimed that every Apple app passes through “a strict review process.” He, however, admitted that users had reported some fraudulent crypto schemes on the AppStore. In this particular case, the fake developer first put the Trezor app in the “cryptograph” category touting it as an app that could encrypt iPhone files and store passwords. Later, the said developer modified it to a crypto wallet app. When Apple was contacted, the spokesperson informed Washington Post that last year, the company had wiped out 6,500 apps for violating the Apple rules on transparency and documentation.

The official, however, admitted that the company relies on the feedback from users and clients to enable them to take action. Later, Christodoulou read the multiple reviews posted by users who had also fallen victims of the fake Trezor app and realized many others had also been duped.
However, apart from Apple, several other companies have experienced fake crypto wallet apps. In a recent tweet, Trezor warned users of fake Android apps which was installed over a thousand times on the Google Play Store. Apple warned its users against installing such malicious apps because they had no association with either Trezor or SaroshiLabs. The firm added that users should refrain from sharing their seed with anybody except Trezor asks them to do so.