FBI issues an alert of mobile game scams involving cryptocurrencies

The play-to-earn (P2E) gaming sector has become popular in recent years. The popularity has led to some of the largest video game publishers announcing plans to integrate NFTs. However, this sector’s growing size and popularity have attracted scammers and hackers exploiting unsuspecting victims.

FBI issues an alert on mobile game scams

According to the Federal Bureau of Investigations (FBI), scammers were taking advantage of the fact that more people were becoming interested in P2E cryptocurrency games. The agency warned that criminals were creating fake crypto-gaming applications to steal money from players.

The FBI noted that these scammers usually start by building a relationship with their targets. Once the relationship has been established, the scammers launch a gaming application where the promise of earning crypto rewards lures the targets.

The bureau’s statement noted that the hackers informed the victim that they would “purportedly earn cryptocurrency rewards in exchange for some activity, such as growing ‘crops’ on an animated farm.”

The criminals later urge the victims to create a cryptocurrency wallet where they will deposit funds. The victims are informed that the more funds they deposit in this wallet, the higher their rewards will be in the game.

However, after the victims stop depositing money into this wallet, the hackers take over the wallet using malware embedded in the app. Sometimes, the hackers inform the victims that they can access all their funds if they pay a “fake” fee to the platform.

FBI offers tips for those interested in crypto gaming

As aforementioned, crypto gaming is gaining popularity quickly, and the FBI has shared several tips for those interested in this sector. In the press release, the bureau noted that those participating in these games needed to create a unique wallet different from the other crypto wallets they normally use.

Creating a unique wallet specific for these games isolates the funds deposited for the game’s purpose with the main cryptocurrency holdings. Therefore, even if the player unknowingly gives scammers access to his cryptocurrency wallet, it will minimize the possibility of making a loss.

The bureau has also urged crypto gamers to use third-party blockchain explorers. An explorer will check the balances in your gaming wallet in real-time, which will help you identify any malicious activity promptly.

Players should also take advantage of third-party token allowance checkers that will help them identify the sites and the apps that they have granted access to the funds deposited in their wallets. If there are any unauthorized permissions, a player can revoke them.

Despite the apparent challenge of scams in the blockchain gaming sector, traditional gamers, and game publishers are still becoming interested in this sector. Square Enix, one of the largest game publishers, is releasing an NFT game, Symbiogenesis.