Sophos, a global leader in next-generation cybersecurity, has released new insight on an international cryptocurrency trading scam targeting iPhone users through popular dating apps, such as Bumble and Tinder. A report detailing the latest findings, “CryptoRom Fake iOS Cryptocurrency Apps Hit US, European Victims For At Least $1.4 Million,” shows that the operation has escalated.

These fraudulent applications were originally discovered in Asia, where cybercriminals exploited the increased interest in trading apps that was driven by the significant rise in the value of cryptocurrencies, and interest int low-cost or free stock trading, to lure in victims and steal from them. These schemes leveraged on social engineering through dating sites and websites that were designed to look like those belonging to legitimate companies.

Now, the attackers have expanded from targeting people in Asia to include people in the U.S. and Europe. Sophos has uncovered a Bitcoin wallet controlled by the attackers that contains nearly $1.4 million in cryptocurrency, allegedly collected from victims. Sophos researchers have code-named the threat “CryptoRom.”

Double Trouble

In addition to stealing money, the attackers can also gain access to victims’ iPhones, according to Sophos’ research. In this version of the attack, cybercriminals leverage “Enterprise Signature,” a system for software developers that helps organizations to pre-test new iOS applications with selected iPhone users before they submit them to the official Apple App Store for review and approval.

With the functionality of the Enterprise Signature system, attackers can target larger groups of iPhone users with their fake crypto-trading apps and gain remote management control over their devices. What this ultimately means is that attackers could potentially do more than just steal cryptocurrency investments from victims. They could also for instance, collect personal data, add and remove accounts, and install and manager apps for malicious purposes.

Commenting further on this, Jagadeesh Chandraiah, senior threat research at Sophos said, “The CryptoRom scam relies heavily on social engineering at almost every stage. First, the attackers post convincing fake profiles on legitimate dating sites. Once they’ve made contact with a target, the attackers suggest continuing the conversation on a messaging platform.

“They then try to persuade the target to install and invest in a fake cryptocurrency trading app. At first, the returns look very good but if the victim asks for their money back or tries to access the funds, they are refused and the money is lost. Our research shows that the attackers are making millions of dollars with this scam.”

To avoid falling victim to these types of scams, iPhone users should only install apps from Apple’s App Store. Sophos also recommends that users install a security solution on their mobile devices, such as Intercept X for Mobile, to protect iOS and Android devices from cyberthreats. It is also worth securing all home and personal computers with additional protection such as Sophos Home.

“Until recently, the criminal operators mainly distributed the fake crypto apps through fake websites that resemble a trusted bank or the Apple App Store. The golden rule is that if something seems risky or too good to be true – such as someone you barely know telling you about some ‘great’ online investment scheme that will deliver a big profit – then sadly, it probably is,” said Chandraiah.