A Crypto Scam involving Fake Ledger App Swindles Users of over $760K on Microsoft’s App Store

On a recent Saturday, a prominent Blockchain investigator, known here as TonyBlock, reported that a deceptive Ledger Live application made its way into Microsoft’s App Store. This crypto scam cleaned out users to the tune of over $768,000, around 16.8 bitcoins worth $588,000 of the total sum. Ledger is a leading crypto hardware wallet provider, and it suffered significant damage thanks to this fraudulent act.

“Crypto User Warning: An illegitimate processing Ledger Live application is now on the official Microsoft App Store, leading to a loss of over 16.8+ BTC or about $588K,” TonyBlock notified a massive online community.

Fake Ledger App on Microsoft Store Results in Significant Crypto Theft

Shortly after the incident was made public, Microsoft took down the insincere software from its App Store. However, it wasn’t the end of the story. The duplicitous Ledger application also duped another user, as they weaved a tale about losing $180,000 from their ETH/BSC wallet. Many couldn’t believe that such significant losses could happen. TonyBlock explained, “The respective apps weren’t thoroughly vetted,” to explain the disaster. This event is reminiscent of another churned by the fake “Trezor Wallet Suite” app earlier the same year.

Notably, an iOS app sporting the fake “Trezor Wallet Suite” seemed for a period on Apple’s App Store, even though Trezor doesn’t have an iOS application. The turn of events has raised many fingers pointed at these service providers for not strictly overseeing their app listing process.

Ledger’s Stance: ‘We Promptly Alerted the Authorities, but Only Microsoft Can Pull It down and Mitigate it’

A similar event occurred during March 2021, wherein a user downloaded a counterfeit Trezor application unknowingly on Apple’s App Store, losing his entire bitcoin savings in the process. The victim voiced his anger more toward the tech giant Apple than to the actual culprits.

At that time, Apple responded, “On rare occasions when our users fall prey to fraudulent attempts, we act swiftly against these perpetrators and introduce protocols to prevent any such violations in the future.”

However, despite such tall claims, app stores like Microsoft, Apple, and Google have repeatedly failed to curb and prevent phishing attempts with imposter apps posing as trusted software.

Such fake applications are so well designed that they manage to gain the user’s trust and manipulate them into giving out their seed or login information to hijack their funds. Therefore, it is vital to exercise caution and verify the legitimacy of an app by checking for misspellings, mismatched programming, and notably, the developer’s contact information.

The support team at Ledger immediately updated the Twitter community about the counterfeit app by stating, “Ledger users, please be cautious of the fake Ledger Live applications making rounds on the Microsoft Store. The only secure method to download Ledger Live is through our official website. Ledger NEVER requests for your 24-word recovery key. Ensure utmost safety.” Ledger also notified the community that it has reported the incident to Microsoft.

Do you have any input regarding the fake Ledger app that invaded the Microsoft store? Your thoughts and comments on this matter would certainly be appreciated.

Frequently asked Questions

1. How did crypto users lose $760K to a counterfeit Ledger app on Microsoft Store?

Answer: Crypto users lost $760K to a counterfeit Ledger app on Microsoft Store due to the presence of a malicious app posing as a legitimate Ledger app. Many users were deceived into downloading and using the fake app, which allowed scammers to gain access to their crypto assets and steal their funds.

2. How did the counterfeit Ledger app manage to get listed on the Microsoft Store?

Answer: The counterfeit Ledger app managed to get listed on the Microsoft Store by evading the platform’s security measures and disguising itself as a legitimate application. It exploited the trust placed by users in well-known brands like Ledger, leading them to believe it was a genuine app.

3. What were the consequences faced by crypto users who fell victim to the counterfeit Ledger app?

Answer: Crypto users who fell victim to the counterfeit Ledger app faced significant financial consequences, losing a total of $760K worth of cryptocurrencies. Once the scammers gained access to their crypto assets, they were able to transfer the funds to their own wallets, making it difficult for the victims to recover their stolen assets.

4. How can users protect themselves from falling prey to counterfeit apps on online platforms?

Answer: To protect themselves from falling prey to counterfeit apps on online platforms, users should always exercise caution and conduct thorough research before downloading any application. It is advisable to verify the legitimacy of the app developer, read reviews from trustworthy sources, and only download apps from verified and trusted sources, such as official app stores or the developer’s official website.

5. Did Ledger take any action to address the issue of the counterfeit app on the Microsoft Store?

Answer: Yes, Ledger took immediate action to address the issue of the counterfeit app on the Microsoft Store. The company issued warnings to its users through official channels, notifying them about the presence of the fake app and urging them to refrain from using it. Additionally, Ledger reported the fraudulent app to Microsoft, requesting its removal from the store.

6. Are there any legal repercussions for the scammers behind the counterfeit Ledger app?

Answer: The legal repercussions for the scammers behind the counterfeit Ledger app depend on various factors, such as their location and the applicable laws. If identified and apprehended, they may face criminal charges, including fraud, identity theft, and unauthorized access to computer systems. However, tracking down and prosecuting such scammers can be challenging due to the anonymous nature of cryptocurrencies.

7. What steps can crypto users take to enhance the security of their digital assets?

Answer: Crypto users can take several steps to enhance the security of their digital assets. Firstly, they should always use hardware wallets, such as Ledger or Trezor, which provide an extra layer of security compared to software wallets. Additionally, enabling two-factor authentication (2FA), regularly updating software and firmware, using strong and unique passwords, and staying vigilant about phishing attempts can significantly reduce the risk of falling victim to scams and counterfeit apps.