Report Reveals In-App Purchase Scams in the App Store

An investigation into App Store developer pay-outs has uncovered a scamming trend in which apps advertising fake services are making thousands of dollars a month from in-app purchases.

In a Medium article titled How to Make $80,000 Per Month on the Apple App Store, Johnny Lin describes how he discovered the practice, which works by manipulating search ads to promote dubious apps in the App Store and then preys on unsuspecting users via the in-app purchase mechanism.

scam apps

I scrolled down the list in the Productivity category and saw apps from well-known companies like Dropbox, Evernote, and Microsoft. That was to be expected. But what's this? The #10 Top Grossing Productivity app (as of June 7th, 2017) was an app called "Mobile protection :Clean & Security VPN".

Given the terrible title of this app (inconsistent capitalization, misplaced colon, and grammatically nonsensical "Clean & Security VPN?"), I was sure this was a bug in the rankings algorithm. So I check Sensor Tower for an estimate of the app's revenue, which showed… $80,000 per month?? That couldn't possibly be right. Now I was really curious.

To learn how this could be, Lin installed and ran the app, and was soon prompted to start a "free trial" for an "anti-virus scanner" (iOS does not need anti-virus software thanks to Apple's sandboxing rules for individual apps). Tapping on the trial offer then threw up a Touch ID authentication prompt containing the text "You will pay $99.99 for a 7-day subscription starting Jun 9, 2017".

scam apps 1
Lin was one touch away from paying $400 a month for a non-existent service offered by a scammer.

It suddenly made a lot of sense how this app generates $80,000 a month. At $400/month per subscriber, it only needs to scam 200 people to make $80,000/month, or $960,000 a year. Of that amount, Apple takes 30%, or $288,000 — from just this one app.

Lin went on to explain how dishonorable developers are able to take advantage of Apple's App Store search ads product because there's no filtering or approval process involved. Not only that, ads look almost indistinguishable from real results in the store, while some ads take up the entire search result's first page.

Lin dug deeper and found several other similar apps making money off the same scam, suggesting a wider disturbing trend, with scam apps regularly showing up in the App Store's top grossing lists.

It's unclear at this point how these apps managed to make it onto the App Store in the first place given Apple's usually stringent approval process, or whether changes to the search ads system in iOS 11 will prevent this immoral practice from occurring in future. We'll be sure to update this article if we hear more from Apple.

In the meantime, users can contact Apple if they have concerns about an app they've already purchased, or report scam apps if they see them, by using the iTunes Connect Contact Us form. (Select "Feedback and Concerns" and "Report a Fraud Concern".) It's also worth informing less savvy friends of this scamming trend until something is done to eradicate it.

Popular Stories

iPhone SE 4 Vertical Camera Feature

iPhone SE 4 Rumored to Use Same Rear Chassis as iPhone 16

Friday July 19, 2024 7:16 am PDT by
Apple will adopt the same rear chassis manufacturing process for the iPhone SE 4 that it is using for the upcoming standard iPhone 16, claims a new rumor coming out of China. According to the Weibo-based leaker "Fixed Focus Digital," the backplate manufacturing process for the iPhone SE 4 is "exactly the same" as the standard model in Apple's upcoming iPhone 16 lineup, which is expected to...
iPhone 17 Plus Feature

iPhone 17 Lineup Specs Detail Display Upgrade and New High-End Model

Monday July 22, 2024 4:33 am PDT by
Key details about the overall specifications of the iPhone 17 lineup have been shared by the leaker known as "Ice Universe," clarifying several important aspects of next year's devices. Reports in recent months have converged in agreement that Apple will discontinue the "Plus" iPhone model in 2025 while introducing an all-new iPhone 17 "Slim" model as an even more high-end option sitting...
iPhone 16 Pro Sizes Feature

iPhone 16 Series Is Just Two Months Away: Everything We Know

Monday July 15, 2024 4:44 am PDT by
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
Apple TV Plus Feature 2 Magenta and Blue

Apple TV+ Curbs Costs After Expensive Projects Fail to Capture Viewers

Monday July 22, 2024 5:11 am PDT by
Apple is scaling back its Hollywood spending after investing over $20 billion in original programming with limited success, Bloomberg reports. This shift comes after the streaming service, which launched in 2019, struggled to capture a significant share of the market, accounting for only 0.2% of TV viewership in the U.S., compared to Netflix's 8%. Despite heavy investment, critical acclaim,...
bsod

Microsoft Blames European Commission for Major Worldwide Outage

Monday July 22, 2024 11:55 am PDT by
Last Friday, a major CrowdStrike outage impacted PCs running Microsoft Windows, causing worldwide issues affecting airlines, retailers, banks, hospitals, rail networks, and more. Computers were stuck in continuous recovery loops, rendering them unusable. The failure was caused by an update to the CrowdStrike Falcon antivirus software that auto-installed on Windows 10 PCs, but Mac and Linux...

Top Rated Comments

djcerla Avatar
93 months ago
A fool and his money are soon parted.

But an antivirus should not be in the App Store to begin with.
Score: 20 Votes (Like | Disagree)
Phil A. Avatar
93 months ago
Reading the linked article, it seems the scammers are (ab)using the new advertising within the App Store to promote their "apps" and making thousands and thousands of dollars doing so.
Doesn't really reflect well on Apple IMO - the whole purpose of the walled garden is that it's safer than the wild west approach of Google and that should include protecting people from getting scammed
Score: 19 Votes (Like | Disagree)
Ploki Avatar
93 months ago
I can't remember the last time I even downloaded an app from the App Store never mind paying for any in app purchases.

Hope people wise up to this.
There's plenty of useful paid apps, and plenty of quality fun paid games, even with IAPs. your generalization is quite pointless.
Score: 16 Votes (Like | Disagree)
miknos Avatar
93 months ago
Like MacKeeper for macOS.
Score: 15 Votes (Like | Disagree)
Edsel Avatar
93 months ago
With Apple, Inc. taking 33% of App revenue, hosting criminal apps under their brand, bragging about their security, and not immediately stopping this activity.....there must be a bunch of class action lawyers jumping for joy.
Score: 12 Votes (Like | Disagree)
WarHeadz Avatar
93 months ago
No doubt more can and should be done by Apple when it comes to policing such scams, but shouldn't the victims bear some degree of the blame as well? The terms and conditions are right there in front of them, and nobody is twisting their arm into making a purchase.
You might have a point if a legitimate service was being offered here. In this case, the service being advertised is non-existant. It's fraud.
Score: 12 Votes (Like | Disagree)