Fake WalletConnect App Steals Over $70K in Cryptocurrency from 150 Users on Google Play Store

• A fake WalletConnect app on Google Play Store stole $70K, affecting 150 users through fraudulent crypto transactions.
• The app mimicked WalletConnect’s interface to trick users into authorizing phishing transactions, moving funds immediately.
• Experts urge caution when downloading apps and recommend multi-factor authentication to protect crypto assets.

A malicious wallet app disguised as a legitimate service on the Google Play Store managed to steal over $70,000 in cryptocurrency. The app impersonated WalletConnect, a trusted Web3 protocol, and remained active for four months before its removal. 

During this time, it fooled around 150 users by tricking them into authorizing fraudulent transactions. Though the app was downloaded 10,000 times, only a fraction of users were affected. Checkpoint Research recently revealed these details, highlighting the growing risk of phishing attacks in the crypto market.

WalletConnect Mimicry and Phishing Tactics

The fake app took advantage of WalletConnect’s popularity by mimicking its interface and functionalities. WalletConnect is typically used to connect crypto wallets with decentralized applications (dApps) using QR codes. 

By appearing legitimate, the malware tricked users into approving unauthorized transactions, granting the scammers access to their funds. Notably, once users unknowingly authorized these transactions, the stolen funds were moved immediately. 

Cybersecurity Experts Urge Vigilance

Michael McLaughlin, co-leader of the Cybersecurity and Data Privacy Practice Group at Buchanan Ingersoll & Rooney, emphasized the importance of cybersecurity, particularly in cryptocurrency trading. 

According to McLaughlin, users should always implement multi-factor authentication (MFA) on trading platforms such as Coinbase or Kraken to protect their assets. He added that ensuring basic cybersecurity practices on mobile devices can prevent many attacks.

McLaughlin also advised caution when downloading applications, suggesting users review the number of ratings and stars before installation. He explained that low ratings or few reviews should raise concerns about the app’s legitimacy.

Application History and Suspicious Activity

In addition to checking reviews, McLaughlin recommended scrutinizing the app’s history. Some fraudulent apps may start as something innocent, such as a flashlight app, and then pivot into a cryptocurrency platform, tricking users into believing it is legitimate. 

He noted that this tactic allows scammers to maintain high ratings while changing the app’s purpose. Such sudden transitions can serve as warning signs for unsuspecting users.