A fake wallet app impersonating WalletConnect on Google Play managed to steal over $70,000 in cryptocurrency through a phishing scheme before being removed from the platform. For four months, the fraudulent app tricked users into approving unauthorized transactions, ultimately leading to losses for approximately 150 victims. The app had been downloaded 10,000 times, according to Checkpoint Research.
WalletConnect is a trusted Web3 protocol enabling secure communication between crypto wallets and decentralized apps (dApps), but this malicious app exploited unsuspecting users. This scam highlights the growing threat of cryptocurrency fraud, even as overall losses from hacks and scams have declined. According to Immunefi, Q3 2024 saw a 40% drop in losses compared to the previous year, falling to $413 million from $685 million.
Despite increased awareness, crypto scams remain a serious issue, with phishing attacks posing a constant threat to Web3 security.
