The Chinese Ministry of Industry and Information Technology has issued a warning about a counterfeit digital yuan application that is deceiving users by mimicking the official platform.

The fake app, which presents itself as a “Digital Yuan Test Version,” features a similar logo, user interface, and slogans to the legitimate app but can be distinguished by differences in its package code and version number.

The tech ministry’s alert comes as the digital yuan, China’s central bank digital currency (CBDC), gains traction in international trade, raising concerns about the potential displacement of the U.S. dollar as the world’s reserve currency.

The fraudulent app not only poses a risk of financial loss to users by offering fake promotions and “dividends,” but also threatens personal data security. It prompts users to download uncommon messaging apps for customer service, leading to potential fund seizures.

This incident is not the first of its kind, with similar digital yuan app scams reported in 2021 and 2022.