How to Spot and Avoid Fake Digital Yuan Apps

The digital yuan, China’s official central bank digital currency (CBDC), has been making headlines with its innovative features and applications. However, not all news about the e-CNY is positive. Recently, the Chinese Ministry of Industry and Information Technology (MIIT) warned the public about new fraudulent schemes involving counterfeit digital yuan apps.

Fake Apps Mimic the Official Platform

According to a social media post by the MIIT, these fake apps are designed to look like the official digital yuan platform, deceiving users into downloading and interacting with them by offering various “promotions”. The counterfeit app, named “Digital Yuan Test Version”, has a logo similar to the official app’s and a slightly different user interface. However, one can differentiate the forged from the authentic by checking its package name, the version, or the MD5 message-digest algorithm. For example, the official app’s package name is cn.gov.pbc.dcep, while the “Test Version” excludes the governmental elements and presents as com.ecny.ecny2.

Fake Apps Use Pyramid Schemes and Phishing Tactics

With the logo, UI, and slogans comparable to the original, the fake apps often resemble pyramid schemes and claim to offer “dividends” for the users that share the software. The scammers misused the e-CNY promotions and simulated “national welfare” distributions. After users are lured to download the forged apps, they would be required to fill out detailed personal information for the “eligibility verification”, creating a false sense of legal compliance. The apps may even ask if the users have previously participated in similar programs and received funds in digital yuan, intentionally extending the waiting period to bait the trap. Eventually, the fake apps have customer service pages set up for the users while they may find no deposits in their wallets or fail to withdraw the “funds” sent by the scammers. To resolve the “technical issue”, the users must download messaging apps other than the commonly used ones and fall into the quagmire. The “customer service” would end up asking for money instead of giving out the “welfare”.

How to Avoid Falling Victim to Fake Apps

Though users can avoid such scams by only downloading apps from the verified platforms, criminal activities still increased as popularity of China’s CBDC grew. In January, the Yangpu District People’s Court of Shanghai issued the verdict for the first instance of money laundering using digital yuan and cryptocurrency. In the meantime, China is looking to deploy more real-world e-CNY applications.

To protect themselves from fake apps, users should follow these tips:

• Do not download apps from unknown sources or links. Only use the official app store or the official website of the People’s Bank of China (PBOC) to download the digital yuan app.
• Do not share personal or financial information with strangers. The official digital yuan app does not require users to provide any sensitive information such as bank account details, ID numbers, or passwords. Users should also avoid clicking on any suspicious links or attachments that claim to offer digital yuan rewards or benefits.
• Do not trust unrealistic promises or guarantees. The official digital yuan app does not offer any interest, dividends, or welfare distributions to users. Users should also be wary of any app that claims to have a “test version” or a “beta version” of the digital yuan, as these are likely to be scams.
• Report any suspicious activity or app to the authorities. Users should contact the PBOC, the MIIT, or the local police if they encounter any fake apps or scams related to the digital yuan. Users should also delete any fake apps from their devices and change their passwords if they have been compromised.

The digital yuan is a groundbreaking innovation that aims to improve the efficiency and security of the payment system in China and beyond. However, users should also be vigilant and cautious of the potential risks and challenges that come with any new technology. By following the above tips, users can enjoy the benefits of the digital yuan without falling prey to the fake apps.