"Pig Butchering Alert: Fraudulent Trading App targeted iOS and Android users." That's the title of a new report released this week by cybersecurity company Group-IB revealing the official Apple App Store and Google Play store offered apps that were actually one part of a larger fraud campaign. "To complete the scam, the victim is asked to fund their account... After a few seemingly successful trades, the victim is persuaded to invest more and more money. The account balance appears to grow rapidly. However, when the victim attempts to withdraw funds, they are unable to do so." Forbes reports: Group-IB determined that the frauds would begin with a period of social engineering reconnaissance and entrapment, during which the trust of the potential victim was gained through either a dating app, social media app or even a cold call. The attackers spent weeks on each target. Only when this "fattening up" process had reached a certain point would the fraudsters make their next move: recommending they download the trading app from the official App Store concerned. When it comes to the iOS app, which is the one that the report focussed on, Group-IB researchers said that the app remained on the App Store for several weeks before being removed, at which point the fraudsters switched to phishing websites to distribute both iOS and Android apps. The use of official app stores, albeit only fleetingly as Apple and Google removed the fake apps in due course, bestowed a sense of authenticity to the operation as people put trust in both the Apple and Google ecosystems to protect them from potentially dangerous apps. "The use of web-based applications further conceals the malicious activity," according to the researchers, "and makes detection more difficult." [A]fter the download is complete, the application cannot be launched immediately. The victim is then instructed by the cybercriminals to manually trust the Enterprise developer profile. Once this step is completed, the fraudulent application becomes operational... Once a user registers with the fraudulent application, they are tricked into completing several steps. First, they are asked to upload identification documents, such as an ID card or passport. Next, the user is asked to provide personal information, followed by job-related details... The first discovered application, distributed through the Apple App Store, functions as a downloader, merely retrieving and displaying a web-app URL. In contrast, the second application, downloaded from phishing websites, already contains the web-app within its assets. We believe this approach was deliberate, since the first app was available in the official store, and the cybercriminals likely sought to minimise the risk of detection. As previously noted, the app posed as a tool for mathematical formulas, and including personal trading accounts within an iOS app would have raised immediate suspicion. The app (which only runs on mobile phones) first launches a fake activity with formulas and graphics, according to the researchers. "We assume that this condition must bypass Apple's checks before being published to the store. As we can see, this simple trick allows cybercriminals to upload their fraudulent application to the Apple Store." They argue their research "reinforces the need for continued review of app store submissions to prevent such scams from reaching unsuspecting victims". But it also highlights "the importance of vigilance and end-user education, even when dealing with seemingly trustworthy apps..." "Our investigation began with an analysis of Android applications at the request of our client. The client reported that a user had been tricked into installing the application as part of a stock investment scam. During our research, we uncovered a list of similar fraudulent applications, one of which was available on the Google Play Store. These apps were designed to display stock-related news and articles, giving them a false sense of legitimacy."

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