Google is suing two app developers from China and Hong Kong for allegedly using the Google Play Store to promote fraudulent cryptocurrency trading and investment apps, which resulted in users losing anywhere from $100 to tens of thousands of dollars each. These apps were involved in a type of romance scam known as “pig butchering,” where users are lured into investing by false promises of financial gain. Google has shut down the apps and is seeking damages for the economic harm it suffered from investigating the scheme.
According to Google’s complaint, the developers uploaded 87 fraudulent apps to the Play Store, attracting over 100,000 users. The alleged scammers used romance scam messages and YouTube videos to entice users to download the apps, which falsely represented themselves as legitimate investment platforms. Once on the apps, users were led to believe they could earn commissions by promoting the apps to others, but they were ultimately unable to withdraw their investments, losing more money in the process.
Google claims to be the first company in its industry to take legal action against this type of scam and is calling for the developers to be blocked from engaging in further fraudulent activities. The company states that it suffered economic damages of over $75,000 as a result of the investigation. The apps used in the scam have been circulating since at least 2019, and Google is determined to hold the perpetrators accountable for their actions.
The alleged scammers misrepresented details about the apps to the Play Store in order to upload them, and engaged in deceptive practices to manipulate users into investing their money. Google is accusing the developers of violating its terms of service and the Racketeer Influenced and Corrupt Organizations Act. The company is seeking unspecified damages and aims to send a clear message that it will aggressively pursue those who exploit its users through fraudulent schemes.
The scam worked by convincing users to download fake cryptocurrency exchange and investment apps, showing them false balances and returns on investments. Users were led to believe they could earn money by promoting the apps as affiliates, but in reality, they were unable to withdraw their funds. Google is taking steps to protect the integrity of its app store and prevent future instances of fraud, demonstrating a commitment to holding bad actors accountable for their actions.
The developers targeted vulnerable users through text messages and social media, using familiar-sounding messages to establish a connection before persuading them to invest in the fraudulent apps. Once users were on the platforms, the scammers made it difficult for them to access their funds, requiring fees or minimum balances for withdrawals. Google’s lawsuit against the alleged scammers is a crucial step in combating fraudulent activity on its platform and protecting users from falling victim to similar schemes in the future.