An allegedly fake digital yuan app has been uncovered, as reported in a post on WeChat attributed to the Chinese Ministry of Industry and Information Technology. The counterfeit app closely resembles the official version but exhibits minor differences.
The fake app, masquerading as the central bank digital currency, not only claims to offer dividends but also harvests sensitive user data. Additionally, it provides fake customer service, directing users to “uncommon social tools” that facilitate the seizure of their funds, according to the ministry’s statement.
The counterfeit app utilizes a logo with a distinct outline from the authentic version and features a user interface that is similar yet slightly different. Moreover, it bears a different name and version number, along with a distinct MD5 message-digest identity.
The post did not provide details regarding the parties responsible for the scam or the measures being implemented to curb it. Notably, efforts to locate the fake app in the Apple or Google app stores were unsuccessful.
This incident is not the first instance of fraudulent digital yuan apps. Similar scams were uncovered in 2021 and 2022. Former People’s Bank of China Governor Zhou Xiaochuan addressed the issue at the 2023 China (Beijing) Digital Finance Forum, emphasizing the need to address the increasing risk of abuse in digital currency development.
Despite China’s strict anti-crypto stance, the country has witnessed several high-profile crypto-related crimes. In December, rogue foreign exchange traders utilized cryptocurrencies in a $2.2 billion operation to export funds from China, which was subsequently busted by authorities.
While Chinese authorities cite concerns over data theft and money laundering as driving factors behind their anti-crypto campaign, some argue that the crackdown on capital flight serves as the true motivation.
In 2023, the digital yuan witnessed $250 billion in transaction volume. During the same year, a Chinese court seized a digital yuan wallet in a civil case involving an investment dispute, underscoring the growing significance of digital currency in legal proceedings.
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