Notorious crypto scam found masquerading on app stores
Which? is warning of scam apps lurking in app stores and claiming to either allow you to trade or assist you in trading cryptocurrency.
Two of the apps we found are linked to a known scam called Quantum AI.
While many apps found on the main app stores (Apple and Google) are safe, it's not the first time scam apps have been found.
In December, cybersecurity firm Kaspersky discovered more than 300 scam apps on the Apple App Store and Google Play. The apps all claimed to offer investments in cryptocurrency and natural resources.
Antivirus company Avast also uncovered scam apps and told us that it recently found variations of subscription scams appearing on Google Play.
The scam malware was disguised as photo editor, gif maker or wallpaper apps and attempted to subscribe users to fraudulent recurring subscriptions once installed on the device.
Read on to find out more about what Which? found and how to avoid downloading a scam app.
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Dodgy trading apps
The four apps we found all had similar names and claimed to provide the same service – a free crypto trading account which uses ‘AI and algorithmic technology’ to help you trade.
The apps we found were called:
- Immediate Bitwave
- Immediate Vortex
- Immediate Edge
- Ethereum Code
We also found several websites with the same name for each app, but it's unclear if these websites are linked. When looking at the Financial Conduct Authority’s (FCA) register, where you can find financial firms regulated by it, Immediate Bitwave, Immediate Vortex and Ethereum Code can’t be found.
A search for Immediate Edge generates a message stating that it is an unauthorised firm that may be providing financial services or products in the UK without the FCA’s permission.
The developers of the apps also can’t be found on the registers, apart from the developers of Ethereum code – Bitcoin Prime Ltd – which the FCA also warns is an unauthorised firm.
Immediate Bitwave
Immediate Bitwave is available on both the Apple App Store and Google Play, and Google Trends data shows that searches for it have spiked in recent weeks.
It claims to offer ‘a free trading account’, which is ‘automatically linked to a secure broker’. It also states that you’ll only have to trade for 20 minutes a day as their ‘automated methods’ will do most of the ‘heavy lifting’.
For the purposes of our investigation, we downloaded the app and it asked for our name, email and phone number to register.
Initially, it said ‘server error’. However, within minutes we received a call from ‘John’ an ‘accounts manager’ from ‘Quantum AI’.
We weren't surprised by this, Quantum AI is a known scam investment company that we've previously encountered when researching scam ads on social media – most notably a deepfake video of Martin Lewis, which sees Mr Lewis falsely promote the fraudulent crypto company.
'John' told us that everything is ‘recorded by the FCA’ and we would be given a financial advisor. He said that the platform works using AI and a ‘mathematical algorithm’. When we tried to end the call, he desperately tried to keep us on the phone, saying that we wouldn’t be able to call him back because the ‘line is blocked’.
After hanging up, we received 89 missed calls from random UK mobile numbers over four days. When we tried to call some of these numbers back, they all went to voicemail.
A few days later, we answered another call, but this was a different caller who told us that we had signed up for a trading account on an app called Check Box and that he was from Quantum AI.
He told us that the company provided ‘robots that trade on financial markets’ for the user. He also said that we couldn’t call him back as the number was only capable of outbound calls.
On the Apple App Store, one reviewer calls the app a scam while another warns other users not to download it due to receiving ‘nothing but phone call after phone call from different numbers’.
On Trustpilot, a reviewer explains how they requested the withdrawal of their funds two months ago, but no one answered them, so they had to get their money back using an independent scam recovery service.
- Read more: best mobile antivirus apps
Immediate Vortex
Immediate Vortex is an app available on the Apple App Store and offers the same service as Immediate Bitwave. It claims to offer ‘investment insights’ and an ‘AI predictor guide’.
All of the Trustpilot reviews of Immediate Vortex are negative, one reviewer said: ‘I put in £216 and it grew quite quickly. There were issues with brokers and my suspicions started. No further calls and no trades opened. I decided to try to take my original stake out, but was declined.’
Another reviewer detailed how they were harassed with calls ‘non-stop’ after signing up and were told that Immediate Vortex would continue to call even after the person asked them to stop.
Immediate Edge
Immediate Edge is available in two different versions on both the Apple App Store and Google Play, and claims to offer ‘crypto investing assistant’ and ‘crypto trading and investing’.
Immediate Edge and Immediate Bitwave had a similar interface when we downloaded them from the Apple App Store and included identical product descriptions.
Bitwave and Edge
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On two Trustpilot pages linked to two of its websites, there's a warning on of the pages that says: ‘We have reason to believe this company is engaging in scam or deceptive practices.’ On the other page, Trustpilot warns: ‘We’re aware that this company has received regulatory attention.’
One Trustpilot reviewer warns: ‘Please do not use Immediate Edge! They use remote access to get control of your phone, for example, removing apps and getting access to bank accounts.'
On Google Play, the app has an average rating of 2.2 with one reviewer stating how they lost £360.
Ethereum Code
Ethereum Code is available on the Apple App Store and claims to not be a trading platform, but allows users to ‘monitor the asset movement in real time’.
However, within minutes of signing up to Ethereum Code’s app, we received a call from Quantum AI who said we'd just signed up for a trading account.
On Trustpilot, one reviewer of the app said: ‘I stupidly clicked on this because it mentioned Martin Lewis. Now I’m being inundated with calls from mobiles in London and Berlin, and other foreign numbers. I have contacted the TPS and their answer was to change my number. Helpful.’
On the Apple App Store, reviewers stated that they received many cold calls after signing up.
What does Apple and Google say?
We shared our findings with Google, which confirmed it suspended the apps and it told us:
‘The safety and security of users is our top priority, and if we discover an app that violates our policies, we take appropriate action.’
Apple told us that its App Review team carefully reviews every app and update and its constant upkeep reduces spam, malware and fraud.
In 2022, it blocked or removed nearly 24,000 apps for bait-and-switch violations and rejected 153,000 app submissions that were found to be spam, copycats or misleading. It also took action to prevent nearly 84,000 potentially fraudulent apps from reaching users on the App Store.
After contacting Apple again, it confirmed that all four apps had been removed from the App Store.
We contacted Immediate Edge on the email address listed on the app, but the message failed to be delivered.
We also reached out to Ethereum Code on the email listed in the terms and conditions on the app, but it didn’t get back to us.
We contacted Immediate Bitwave and Immediate Vortex on two different email addresses we found for both of them, but all four of the emails failed to be delivered.
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Consumer protections
Only apps that include user-to-user content, meaning that they let people upload content for other users to see, are covered by the new Online Safety Act.
In December 2022, the government published a voluntary code of practice which sets out minimum security and privacy requirements for app store operators and app developers.
One of the code’s guidelines includes ensuring that only apps that meet the code’s security and privacy baseline requirements are allowed on app stores.
The government plans to work with app operators and developers to implement the code over a nine-month period.
The companies it will work with include Amazon, Apple, Epic Games, Google, Huawei, LG, Microsoft, Nintendo, Samsung, Sony and Valve, and the implementation period has been extended to June 2024.
Spotting and reporting dodgy apps
Follow our seven top tips for spotting a dodgy app:
- Review information from the app’s developer including its privacy policy and T&Cs.
- Read reviews of the app on more than one platform or website.
- Do a quick Google search of the developer and scan its website for the typical scam signs, such as bad grammar and a newly registered URL.
- Always enable two-factor authentication when downloading an app, if possible.
- Think twice about agreeing to the app’s permissions, as while some apps will need to access certain parts of your phone, if the permissions seem excessive, reconsider downloading it.
- Check how recently the app was updated, if an app was updated more than six months ago, then it's one to be wary of.
- Check the number of downloads it has as genuine apps have millions or billions of downloads.
To report apps on the Apple App Store, visit Apple's 'Report a problem' website.
To report an app on Google Play, go to the details page of the app, tap ‘more’, flag it as inappropriate, choose a reason and then tap submit.
If you think you may have been scammed, call your bank immediately using the number on the back of your bank card. Then report it to Action Fraud or call the police on 101 if you’re in Scotland.
