Cybersecurity researchers have unearthed a new methodology employed by fraudsters to target iPhone and Android users by tricking them into installing malware via dubious apps and use it to swipe thousands of dollars.
According to researchers at cybersecurity firm Sophos, a scam campaign dubbed CryptoRom typically begins with social-engineering attack, in which a scammer befriends a victim through dating apps like Tinder, Bumble, or Facebook Dating.
The scammer then moves their conversation to messaging apps such as WhatsApp and asks the victim to install a cryptocurrency trading application that's designed to mimic popular brands and lock people out of their accounts and freeze their funds. In some cases, victims are forced to pay a “tax” to withdraw their money, which they learn by chatting with an in-app customer service representative who is part of the malicious campaign.
"This style of cyber-fraud, known as sha zhu pan — literally 'pig butchering plate' — is a well-organized, syndicated scam operation that uses a combination of often romance-centered social engineering and fraudulent financial applications and websites to ensnare victims and steal their savings after gaining their confidence," stated Sophos analyst Jagadeesh Chandraiah.
The malicious campaign exploits iOS TestFlight and Apple WebClip to deploy fake mobile apps and websites onto victims’ phones without being subject to the rigorous app store approval process. The malicious campaign was initially used in Asia but has hit the U.S. and European victims since October 2021.
TestFlight is used for testing the beta version of apps before they head to the App Store. It is used for small internal tests, sent out to 100 users by email, and public beta tests distributed to up to 10,000 users. But the scammers exploit the TestFlight feature, which provides a way for users to download bogus apps outside of the App Store, researchers explained.
Sophos researchers said some victims installed malicious versions of the legitimate BTCBOX Japanese crypto exchange app that were made available through the TestFlight feature.
The fraudsters also employed iOS WebClips to trick iPhone users, as they were sent malicious URLs via the service. WebClips offers fast access to favorite webpages or links, as Apple highlights, with researchers stating that it can be employed to design fake apps to appear more authentic.
