Tornado Cash Founders Charged in Billion-Dollar Crypto Laundering Scandal

The U.S. Justice Department (DoJ) on Wednesday unsealed an indictment against two founders of the now-sanctioned Tornado Cash cryptocurrency mixer service, charging them with laundering more than $1 billion in criminal proceeds. Both the individuals, Roman Storm and Roman Semenov, have been charged with conspiracy to commit money laundering, conspiracy to commit sanctions violations, and

Tornado Cash Developer Arrested After U.S. Sanctions the Cryptocurrency Mixer

Dutch authorities on Friday announced the arrest of a software developer in Amsterdam who is alleged to be working for Tornado Cash, days after the U.S. sanctioned the decentralized crypto mixing service. The 29-year-old individual is "suspected of involvement in concealing criminal financial flows and facilitating money laundering" through the service, the Dutch Fiscal Information and

Kids & Cash Apps: What Parents Need to Know

Fewer people carry cash these days, kids included. This growing paperless reality fast-forwards the parenting task of educating kids on financial responsibility. As of 2021, most cash apps allow kids 13 and up to open accounts (previously, the age was 18). Kids can also get a cash app debit card for retail purchases. But while cash apps are a popular and convenient tool, they come with some risks families should consider.  

Instant Transactions 

Cash apps allow kids to exchange money with friends directly from a secondary established account, much like handing another person cash. Cash apps have become a popular tool with kids and an easy way to split costs or pay someone for a purchase. Cash apps also come in handy for families and allow parents to instantly send their children money for daily expenses such as school or sports fees, meals, purchases, or entertainment. Some common cash apps include Venmo, Zelle, Cash App (Square), Pay Pal, Zelle, and Facebook Pay, among others.   

Some Risk 

Sounds awesome right? But with ease comes risk. Most money transfer app funds are not FDIC insured. That means if your child (or you) accidentally sends money to an unintended recipient, they may have a tough time recovering those funds.  

Every app comes with some degree of risk. While the leading cash apps are considered secure and can be used with little concern, there’s always the potential of a cyber crook finding a security loophole that exposes your money, banking information, and identity.  

10 Cash App Safety Tips for Families 

1. Discuss the risks. Clicks within a cash transfer app equal real cash. Help your kids understand digital money is equal to actual dollars. Take the time to discuss current scams and how to practice extra care when using cash apps.  
2. Use safeguards. Using security best practices is not a skill that comes naturally to most people. It’s something that must be practiced and improved constantly. Just like computers, mobile devices can be infected with viruses and malware. One way to protect mobile devices (and cash apps) is to subscribe to a mobile antivirus product, such as McAfee Mobile Security, which includes safe browsing, scanning for malicious apps, and locating your device if it is lost or stolen.  
3. Layer up app security. In addition to an antivirus tool, guide your kids in how to add additional security to their cash apps. Guide them in how to follow password security protocols and how to add protection in the form of a PIN code, facial ID, or fingerprint ID. While you are at it, make sure your child locks their device in the same way. These steps offer more protection in case your child’s phone is stolen or lost, and a stranger attempts to use the cash app.  
4. Slow down and verify. As fast as kids’ fingers move on keypads, advise your child to slow down and verify spelling and a recipient’s account address when using a cash app. Most cash app providers will not help users recover misdirected funds. One typo or clicking on the wrong Jake Williams in the recipient list can cost you or your child big bucks.  
5. Only connect with friends. When using cash apps, advise kids to only exchange money with people they know. Scammers have been known to befriend minors only to ask for a loan or offer goods or services. Once the payment is sent, the scammer instantly deletes their accounts and is gone without a trace.  
6. Stay on top of cash app scams. Check BBB Scam Tracker to see how bad actors are targeting cash app users. In searching cash app scams on this site, consider reading the personal stories (click “details” of each reported scam) of the people who have been victimized. This might be a very effective way to converse with your kids about the natural consequences of online scams.  
7. Safeguard personal data. Remind kids not to share their email, address, or other information. Also, avoid clicking pop-up ads, trendy quizzes, and random website URLs designed to plant malware on a device that steals bits and pieces of personal info that can be used for various attacks, including financial and identity theft.  
8. Link your app with a credit card. If possible, consider linking your child’s cash app to a credit card rather than a bank account. Debit cards remove cash from an account instantly, but credit cards offer consumer protection in cases of fraudulent transactions. The one drawback is that a credit card company will charge interest on your balance.  
9. Keep app balances low. Cyber crooks can’t steal funds that aren’t there. For that reason, it’s wise to keep balances low in your child’s cash app account.  
10. Teach financial literacy basics. The cash app conversation is an excellent opportunity to begin or expand your family’s conversation on financial literacy. Here are several helpful resources that will help you teach your kids financial literacy at any age.     

The use of cash apps is here to stay and, no doubt, an integral part of the overall paperless fast track we’re all on. Guiding kids into this realm equipped with knowledge and confidence is a powerful way parents can help kids enjoy the responsibility of money without falling prey to digital risks.     

The post Kids & Cash Apps: What Parents Need to Know appeared first on McAfee Blog.

9 Tips to Help Kids Avoid Popular App Scams

 There’s a lot of conversation going on right now around digital apps; only it’s not about TikTok or Twitch. Instead, it’s about the spike in the number of app scams taking place every day—many of them impacting younger consumers. 

In a recent report from The Washington Post, nearly two percent of the apps downloaded from the Apple store in a single day were scams costing consumers an estimated $48 million. A similar report this week in Tech Republic estimates more than 170 Android apps, including 25 on Google Play, have attempted to scam people by offering cryptomining services for a fee but then failing to deliver. Scam reports can also be attributed to side-loaded apps, which are apps installed from unofficial sources online.  

While the scam structures vary, the most popular ones pose as legitimate brands such as Amazon or Samsung, persuading users to download apps they don’t need. Other scams use misleading tactics, manipulate ratings and reviews, and trick people into paying for something accidentally. 

Teens targeted  

Scams that target teens abound online because hackers assume younger consumers are more impulsive and casual about their online privacy. According to the Better Business Bureau, scams targeting teens include social media scams used to collect personal info for identity theft. Others include bogus auctions for luxury goods, scholarships and job offer scams, and promises of free items such as cell phones.  

Dating and Security Apps

Some of the most popular scams can be found in fraudulent dating apps, according to the report. The Federal Trade Commission stated that consumers reported a record $304 million lost to romance scams in 2020, a number that has spiked since the pandemic. While some scams look like legit dating apps, others surface in hangout apps such as Clubhouse, Google Hangouts, or seemingly harmless apps like Words with Friends. 

App scams have been discovered embedded in spying and internet security apps. Ironically, several of those have been in alleged VPN (Virtual Private Network) apps that promised privacy but instead collected sensitive user data.  

Cash and Gaming Apps 

Consumers, especially kids, can be scammed through peer-to-peer cash apps, such as Venmo or Zelle. Because cash apps require users to link to a personal bank account directly, scammers can easily sell you goods or befriend you to send money only to delete their accounts and disappear.  

Likewise, downloadable gaming apps can contain scams that offer free in-game currency. By clicking on a link and entering a username, password, gamers are promised free currency—only it never shows up in their account.   

While the debate continues over how to improve both Apple and Google Play’s app security standards, for now, anyone downloading an app is at risk to some degree.  

So how can you be sure your family’s apps are safe to use? While it’s getting harder to discern, there are some key steps you can take to reduce your risk.  

9 Tips for Avoiding an App Scams

1. Understand the risk. Making the threat real and believing a scam can happen to you is a significant step in safeguarding your family. This includes taking the time to discuss current digital threats and leveling up mobile security wherever possible.  
2. Do your homework. Read app reviews. If an app is sketchy in any way, users will be vocal in the app review section. In addition, do an online search of the app to see what consumers and other watchdog agencies such as the BBB say about the app. Check BBB Scam Tracker to see if others have been duped. 
3. Safeguard personal data. Remind kids not to share their email, address, or other information. Pop-ups, trendy quizzes, and links websites can be ruses designed to steal bits and pieces of personal info that can be used as the basis of an attack. 
4. Maximize security. When using cash apps, turn on additional security features such as multi-factor authentication, creating a PIN, or using fingerprint recognition. 
5. Pay attention to permissions. Apps often ask for access to certain features on your device, such as the camera, phone, or your contacts. Sometimes the ask is legit; other times, it’s just a ruse to gain access to your personal information. Stop to examine the request and why the information is needed.   
6. Subscribe to a mobile antivirus program. Just like computers, mobile devices can be infected with viruses and malware. Protect mobile devices by subscribing to a mobile antivirus product, such as McAfee Mobile Security, which includes safe browsing, scanning for malicious apps, and locating your device if it is lost or stolen.  
7. Only connect with people you know. When using cash apps, only exchange money with people you know. Unlike an insured bank, P2P apps do not refund the money you’ve paid out accidentally or in a scam scenario and hold users 100% responsible for transfers. 
8. Slow down and verify details of a transfer. There could be dozens of name variations to choose from in a cash app’s directory, so be sure to select the correct recipient. Also, verify with your bank that each P2P transaction registers. 
9. Use a VPN. When using cash apps, or downloading any apps, avoid public Wi-Fi transfers. Public Wi-Fi is susceptible to hackers trying to access valuable personal information. If you must use public Wi-Fi, consider using a verified and trusted Virtual Private Network (VPN). 

No app is 100 percent safe. All have security loopholes and user behavior can make them vulnerable to a wide range of scams. However, by staying aware, using the right tools, and being wise with your clicks, your family can enjoy the fun of digital life without the fallout.  

The post 9 Tips to Help Kids Avoid Popular App Scams appeared first on McAfee Blogs.