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Crypto-trading Scam Demands Thousands of Dollars in Fake “Profit Tax” to Unlock Victims’ Accounts, Sophos Finds

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Sophos, a global leader in next-generation cybersecurity, has released new insight into an international cryptocurrency trading scam called CryptoRom that targets iPhone and Android users through popular dating apps, such as Bumble and Tinder.

The new research, “CryptoRom Swindlers Continue to Target Vulnerable iPhone/Android Users,” is based on first hand stories and content shared with Sophos by victims of the scam who got in touch after seeing Sophos’ previous reports on CryptoRom.

In the new research, Sophos reports that when victims tried to withdraw their investments from one of the fake trading schemes, their accounts were frozen and were charged up to hundreds of thousands of dollars in fake “profit tax” to regain access. According to Sophos, the CryptoRom operation is increasingly well-organised and sophisticated and targets victims all over the world.

Escalating Costs

In one case shared with Sophos, a victim was charged $625,000 to regain access to the $1 million they’d invested in a fake crypto-trading scheme recommended by someone they’d met on an online dating platform. The dating “friend” then claimed to have invested some of their own money to bring their joint stake up to $4 million.

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According to the scammers, their investment made a profit of $3.13 million, and they were liable for a 20% profit tax, or $625,000, if they wanted to access their account to withdraw funds. In fact, neither the co-investment nor the profits were real, and the online “friend” was part of the scam.

“The CryptoRom scam is romance-centered financial fraud that relies heavily on social engineering at almost every stage,” said Jagadeesh Chandraiah, senior threat researcher at Sophos.

“The scammers attract targets through fake profiles on legitimate dating sites and then then try to persuade the target to install and invest in a fake cryptocurrency trading app.

“The apps are usually installed as web clips and are designed to closely resemble legitimate, trusted apps.

“According to victims of this scam who contacted us after our earlier articles, the 20% ‘profit tax’ is only mentioned when they try to withdraw their funds or close the account. Victims who struggle to pay the tax are offered a loan. There are even fake websites that promise to help people recover their funds if they’ve been scammed.

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“In short, whichever path the increasingly desperate victims go down to try to get their money back, the scammers are there waiting for them. People tell us they have lost a lifetime’s savings or their retirement funds to the scam.”

The Sophos research also found a few cases where the CryptoRom operators had approached targets directly via WhatsApp and SMS messages, probably using stolen information.

New Technical Features

Sophos’ research also details new technical aspects of the CryptoRom operation. For instance, according to Sophos, the fraudsters are misusing Apple’s TestFlight feature that allows for a limited group of people to install and trial a new iOS app and go through a less stringent Apple review process. During 2021, Sophos researchers observed CryptoRom misusing the iOS Super Signature and Apple’s Enterprise Program for the same purpose.

Sophos researchers also found that all the CryptoRom-related websites used by the fraudsters had very similar backend structure and content and that only the brand names, icons and URLs were different. Sophos believes this may enable the scammers to quickly change the websites they use for the scams when one of them is detected and shut down.

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Staying Safe – An Industry Issue

“It is deeply worrying that people continue to fall for these criminal schemes, particularly since the use of foreign transactions and unregulated cryptocurrency markets mean that victims have no legal protection for the funds they invest,” said Chandraiah. “This is an industry wide issue that is not going away. We need a collective response that includes traceability of cryptocurrency transactions, warning users about these scams and quickly detecting and removing the fake profiles that enable this kind of fraud.”

For more information, please read the article “CryptoRom Swindlers Continue to Target Vulnerable iPhone/Android Users.”

Sophos has published previous research into CryptoRom and other crypto-trading and financial fraud. Sophos has also published reports on other cyberthreats facing consumers and home users, including “fleeceware” where users are severely overcharged for mobile application services.

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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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MTN Nigeria Clocks 25, Connects over 90m People

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MTN Nigeria has marked 25 years of commercial operations, with Karl Toriola, chief executive officer, saying the company began operating in the country at a time when telecommunications access was severely limited.

MTN Nigeria Clocks 25, Connects over 90m People

Toriola said that a quarter of a century ago, making a phone call was a privilege few Nigerians could afford.

People queued at public telephone booths and centres, travelled long distances to deliver messages, and sometimes waited weeks for letters to arrive, he said, noting that a mobile phone was then beyond the reach of most.

Today, the company connects more than 90 million people across Nigeria, a figure MTN says reflects its role in building the infrastructure behind the country’s shift to a data-driven economy.

MTN entered Nigeria in 2001 following the GSM liberalisation carried out by the Nigerian Communications Commission (NCC), at a time when mobile telephony was still a luxury reserved for a privileged few.

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Toriola said the milestone was about more than subscriber numbers.

Businesses have been built, families have stayed connected across distances, students have gained access to knowledge, and creators have found audiences beyond Nigeria’s borders, he said, crediting the wider telecommunications ecosystem for enabling entire new industries to emerge.

The company also pointed to its role beyond direct connectivity.

MTN has helped build a wider value chain of SIM registration agents, tower contractors, retail distributors, fintech partners and digital developers that now supports millions of livelihoods in Nigeria.

Toriola thanked MTN Nigeria’s customers, saying their trust had allowed the company to expand its community investments through the MTN Foundation, which has supported health, education, youth development and economic empowerment programmes.

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Looking ahead, the CEO acknowledged that significant connectivity gaps remain, with millions of Nigerians still needing access to reliable, affordable and inclusive digital services.

He said greater digital inclusion would be a central priority for the company’s next chapter, adding that the anniversary marks both a celebration of the past 25 years and a renewed push to expand digital access for the country’s young and growing population.

“We’ve come a long way. And we are only getting started,” Toriola said.

The anniversary comes as MTN Nigeria continues to navigate rising operating costs tied to Nigeria’s unreliable power supply.

Where the national grid is unreliable, the company and its infrastructure partners have had to rely on diesel generators, batteries, solar systems and other backup power solutions, making network operating costs highly sensitive to fluctuations in diesel prices.

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Subscribers to Seek Legal Redress if Poor Quality of Service Continue in September

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Telecommunications subscribers under the umbrella of the National Association of Telecoms Subscribers (NATCOMS), has handed telecommunications operators in the country September deadline to improve network quality or face legal action.

Subscribers to Seek Legal Redress if Poor Quality of Service Continue in September

Deolu Ogunbanjo, president, NATCOMS, said that subscribers have endured deteriorating network services despite repeated interventions, warnings, and sanctions by the Nigerian Communications Commission (NCC).

As reported by BusinessDay, Ogunbanjo, noted that if the situation fails to improve through regulatory intervention, NATCOMS will seek justice through the courts by the end of the third quarter.

The ultimatum comes as rising data consumption, subscriber migration, and growing demand for mobile services place severe pressure on network infrastructure across parts of the country.

The NCC stated that mobile operators have offered compensation to more than 75 million subscribers for poor network quality following a regulatory directive requiring restitution in locations where performance fell below required standards.

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The regulator is conducting an independent review to determine whether all eligible subscribers received proper compensation.

The compensation scheme, provided through automatic airtime credits for verified service failures dating back to November 2025, requires no individual claims from consumers.

For many subscribers, however, airtime credits do little to offset the broader  economic and personal toll of unreliable connectivity.

Emeka Douglas, a subscriber, recounted how poor network quality nearly turned a medical emergency into a tragedy when he was unable to transfer funds to a hospital during his wife’s surgery.

Douglas noted that his brother in the United States eventually sent funds directly to the hospital’s account after local banking channels failed.

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Janet Okoye, a small business owner, said unreliable connectivity severely affected her business after service disruptions on her Airtel and Globacom lines led clients to cancel orders.

Teniola Adeyemi, a university student, highlighted dropped calls as a major concern, stressing that recent tariff increases ought to reflect in better service quality.

Grace Eze, an Abuja-based media professional, explained that fluctuating network connectivity once delayed a lead  news story intended for her editor in Lagos, resulting in an official query over late submission.

Pressure on national networks is driven by both expanding subscriber numbers and rising usage intensity.

Active telephony subscriptions in Nigeria rose from 182.2 million in January 2026 to over 187 million by April, according to NCC data. MTN leads the market with 96.4 million subscriptions, followed by Airtel with 64.7 million and Globacom with 23.2 million.

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ipNX Collaborates with ICT Stakeholders on the Future of Fibre-to-the-Home in Nigeria @ ATCON Forum

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L-r: Mr. Adeyemi Adepetu, Deputy Business Editor, Guardian Newspaper; Mr. Mohammed Lawal, General Manager, FTTH, MTN Nigeria; Mr. Adetola Akinmade, Chief Technology Officer, FiberOne; Mr. Egerton Idehen, Chief Broadband Officer, MTN Nigeria; Mr Tony Emoekpere, President, ATCON; Mr. Segun Okuneye, Deputy Director, Strategic Business Initiatives, ipNX; Mr. Biodun Omoniyi, MD/CEO, VDT Communications Limited; Prince Oyekanmi Elegushi, GM/CEO, Lagos State Infrastructure Maintenance and Regulatory Agency (LASIMRA) and Mr. John Nwachukwu, Chief Strategy & Executive Officer, Zora Communications Limited at the ATCON FTTH Forum which held at the Radisson Blu, Lagos
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ipNX Nigeria joined other stakeholders across the telecommunications ecosystem as they convened at the Association of Telecommunications Companies of Nigeria (ATCON) Critical Conversation Forum on Fibre-to-the-Home (FTTH) to deliberate on practical solutions to the challenges affecting broadband infrastructure deployment and the future of fibre connectivity in the country.

The forum, themed “Fibre to the Home in Nigeria: Addressing Challenges, Strengthening Standards and Ensuring Sustainable Deployment,” was held at the Radisson Blu Hotel, Lagos, and brought together representatives from government agencies, telecommunications operators, regulators, infrastructure providers, industry associations, and the media to foster dialogue around policies and collaborative actions needed to accelerate Nigeria’s broadband ambition.

Delivering the keynote address virtually, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, described Fibre-to-the-Home as a critical enabler of Nigeria’s digital future.

“FTTH is uniquely positioned to meet Nigerians’ next phase of data demand. The quality of our broadband will increasingly shape the competitiveness of our businesses, the growth of our digital industry and the opportunities available to our citizens,” he said.

Dr. Maida also stressed the importance of protecting telecommunications infrastructure, noting that damage to fibre networks carries significant economic consequences.

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“We must uphold deployment standards. Nigeria needs fibre that is properly installed, properly documented, and properly protected.”

Speaking during the opening session, ATCON President, Mr. Tony Emoekpere, underscored the strategic importance of FTTH in achieving Nigeria’s broadband penetration targets while calling for greater public awareness around protecting communications infrastructure.

“This forum is critical because Fibre-to-the-Home is the technology that will enable the country to achieve full broadband penetration. We all depend on communication infrastructure, and it must be protected.”

Drawing a comparison with power infrastructure in the country, he added:

“If somebody comes to your neighbourhood to tamper with your transformer or power cables, everybody will come out. The same thing needs to apply for communications infrastructure. When we see people damaging fibre cables, we should raise an alarm.”

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The forum also highlighted successful collaborative initiatives at the state level. Speaking on infrastructure management, Director-General of the Oyo State Infrastructure Management and Control Agency (OYSIMCA), Mr. Adebayo Akande, shared how the agency is addressing fibre theft, vandalism, and promoting shared infrastructure among operators.

He explained that encouraging operators to utilise common pole infrastructure along shared routes would reduce unnecessary duplication, minimise infrastructure damage, improve urban aesthetics, and optimise investment across the sector.

Similarly, Managing Director of the Edo State Information and Communication Technology Agency (ICTA), Mr. Eghosa Urhoghide, advocated stronger collaboration among operators, regulators, government institutions, road maintenance agencies, and host communities.

He emphasised that strict adherence to NCC deployment standards remains essential to ensuring the long-term sustainability and resilience of Nigeria’s telecommunications infrastructure.

Representing ipNX on the panel discussion titled “Policy, Governance and Regulatory Alignment,” Mr. Segun Okuneye, Deputy Director, Strategic Business Initiatives, highlighted the need for stronger collaboration across the telecommunications ecosystem to unlock the full potential of fibre broadband in Nigeria.

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According to him, sustainable fibre deployment extends beyond technology and investment to include policy consistency, stakeholder alignment, infrastructure protection, and shared responsibility.

“Achieving universal fibre connectivity requires more than deploying infrastructure, it requires sustained collaboration between operators, regulators, government agencies and host communities.

“When policies are aligned, deployment standards are consistently enforced, and critical infrastructure is protected, we create an environment where investment thrives and more Nigerians can enjoy reliable, high-speed broadband.

“At ipNX, we remain committed to working with all stakeholders to build resilient digital infrastructure that will support Nigeria’s economic growth for generations to come.”

Throughout the discussions, participants agreed that while Nigeria has made considerable progress in broadband expansion, addressing recurring issues such as fibre vandalism, right-of-way challenges, inconsistent deployment practices, infrastructure duplication, and limited public awareness will require stronger partnerships and coordinated industry action.

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The forum concluded with a shared commitment among stakeholders to strengthen industry standards, encourage infrastructure sharing, improve policy implementation, and promote greater public appreciation of telecommunications infrastructure as critical national assets deserving of protection.

For ipNX, participation in the ATCON Critical Conversation Forum reinforces our company’s ongoing commitment to supporting industry-wide initiatives that advance broadband penetration, strengthen digital infrastructure, and accelerate Nigeria’s journey towards a more connected and digitally inclusive future.

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