Dear reader, you need to be extremely vigilant not to fall for the PUA fraud, one of the latest tactics scammers use to defraud people. The term PUA stands for “Potentially Unwanted Application.” It may sound unfamiliar, but it’s something that can have a significant impact not only on your digital life but also financial security.
Yesterday, I received an email from one of my readers who recently lost a staggering $1,780,000 to the Modmount fraudulent online trading platform through this scam. You can see the email in the screenshot below:
What Transpired?
It all started when the victim opened a trading account with a dubious online trading platform known as “ModMount”, which operates under the domain “modmountltd.com.”
After setting up an account, the victim was assigned an account manager who seemed trustworthy. This individual carefully built her trust and piqued her interest, eventually leading her to deposit $1,780,000 into her trading account.
However, before this, they had already tricked her into unknowingly installing password-tracking spyware on her device.
With the login credentials they fraudulently obtained through this spyware, the scammer quickly accessed her account and transferred all the funds.
Thereafter, they tried to cover their tracks and make it appear as though the victim had executed losing trades. They did so by fabricating large volume transactions and significant losses.
We’ve Exposed ModMount Before
Interestingly, we’ve brought to light this dubious broker in the past, as you can see in our unbiased review of ModMount. You may click the link to read the review and learn the ugly truth about this FSA-registered yet questionable broker.
Additionally, we’ve exposed ModMount on our Scam Detective YouTube channel, where we provide regular scam alerts to keep you safe from fraudsters. You may watch the video to discover the disturbing truth about this dubious broker fond of PUA tactics by clicking on the above link.
So What Is the PUA Scam?
As I said earlier, the term “PUA” stands for “Potentially Unwanted Applications”. These are software programs that you never intentionally wanted but somehow ended up on your device. They can serve as gateways for cybercriminals, including those that pose as legitimate brokers.
How Does The PUA Fraud Work?
Scammers normally employ two steps in executing the PUA scam:
Step #1.
The first step involves distributing malicious software, such as keyloggers or remote access trojans (RATs), and getting the target to install and activate it on their device.”
RATs are a type of malicious software designed to give scammers remote control over their targets’ devices. This software can record keystrokes and capture sensitive information like usernames, passwords, and other personal data. Some examples of RATs that scam brokers may use to steal your sensitive data include:
- DarkComet.
- Havex.
- BlackShades.
- NjRAT.
- Adwind.
- NanoCore.
- Poison Ivy.
Keyloggers, on the other hand, are a type of spyware designed to secretly record every keystroke you make on your keyboard. Scam brokers often trick you into installing one without you even realizing it. Once activated, they can use it to steal your trading account login credentials and other sensitive information. Some examples of keyloggers that scammers may use to steal your login information include:
- HawkEye.
- Agent Tesla.
- NanoCore.
- Phoenix.
- Ardamax.
- Spyrix.
- Olympic Vision.
Additionally, scammers may use legitimate software with keylogger-like capabilities to achieve the same purpose. For example, both Billnergroup and Ariol Investment Group scam brokers exploit AnyDesk to monitor everything you do, including entering your trading account login credentials. Others use TeamViewer, an alternative to AnyDesk, for the same goal.
How Scammers May Trick You Into Installing and Activating Spyware Without Knowing It
Step #1
They may use different kinds of PUA tactics, including but not limited to the following:
- Phishing Emails — These emails typically contain malicious links or attachments that, when clicked, automatically install and activate spyware on your device.
- Social Engineering — The scammer uses psychological manipulation to persuade you into unknowingly installing and activating spyware.
- Fake Software Updates — The online trading platform or app prompts you to download what appears to be a legitimate software update. In reality, this action automatically installs and activates spyware on your device.
- Trojanized Websites — Scammers might create a cloned online trading platform that prompts you to take specific actions, like downloading software or entering personal information. Doing so automatically installs and activates spyware on your device.
- Maliciously Altered Software or Apps — The scammer may distribute trojanized software or apps secretly embedded with spyware, disguised as legitimate software or apps.
- Trojanized Trading Tools — Sometimes, the trading platform may feature legitimate trading tools, such as indicators and automated trading bots, that are secretly embedded with spyware.
- Bundled Spyware — In some cases, an online trading platform or app may come with bundled spyware in its installation media. The installation process usually doesn’t give you an opportunity to decline the malware payload.
- Deceptive Software Bundling — A scammer may design a trading platform in such a way that many users unknowingly install spyware. They might not carefully read the installation prompts or may click “Next” during the installation process without realizing they are agreeing to additional software being installed.
Step #2
Once you install and activate spyware, the scammer will be able to steal the login credentials for your trading account through the spyware. With those details, they will log into your account and transfer your funds.
Step #3
After that, the scammer will cover their tracks by executing unauthorized, high-volume trades. It’s important to note that scam trading platforms can create fake trading systems that appear real to users. These systems allow scammers to fabricate trades and manipulate outcomes, making you believe you executed a losing trade. In short, the scammer steals your money without you realizing it, by tricking you into thinking you lost, through a fabricated trading system.
List Of Countries with Prevalent PUA Fraud Cases
While PUA fraud can be considered a global cybersecurity issue, some countries are more affected than others.
Certain countries known to have higher rates of online trading scams due to higher incomes and higher rates of internet usage have higher numbers of PUA fraud cases. These countries include:
- Australia.
- The United Kingdom.
- The United States.
- Canada.
Similarly, certain jurisdictions with weaker regulations, less stringent regulatory enforcement, and a high number of unregulated brokers have higher numbers of brokers with PUA tactics. These jurisdictions include:
- Eastern Europe.
- Southeast Asia.
Signs You Are Potentially Being Targeted In A PUA Fraud
If after downloading and installing a software:
- You notice a sudden increase in the number of ads showing on your device.
- There are unexpected changes to your browser settings.
- You notice new programs or toolbars on your computer that you didn’t install.
- Your computer suddenly becomes sluggish or unresponsive after downloading and installing a software.
- You notice unusual network activity such as strange and significant spikes in your internet usage.
Final Thoughts
PUA fraud is a sophisticated scam tactic that some cunning scammers, posing as online trading brokers, now use to defraud investors without their knowledge. These cybercriminals steal the login credentials for your trading account by using spyware that you unknowingly installed on your device. They then log into your account and steal your funds without you noticing.
To avoid raising suspicion, they fabricate trades by opening losing ones on your account. Instead of suspecting theft, you’ll believe you lost the funds through executing poor trades on your own.
Unfortunately, many investors are losing money to scammers this way without even realizing it.
Have You Fallen Victim To PUA Fraud?
If so, and you have evidence, go to this page, or send an email to scamread@scamreader.info to report the incident and seek help.
We consider chat and transaction records sufficient evidence.
We’ll assist you in pursuing your funds by guiding you through all the available recovery options, including those you may not be aware of.
We charge a 10% commission, payable only on the successfully recovered amount.