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Geek Room > Blog > Apps > Google sues crypto scammers for luring people into investments they’d never get back
Apps

Google sues crypto scammers for luring people into investments they’d never get back

Last updated: 2024/04/05 at 10:18 AM
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3 Min Read

Google has initiated legal action against two individuals, identified as app developers located in China and Hong Kong, for allegedly exploiting its Play Store to distribute fraudulent cryptocurrency trading and investment applications.

These applications were part of a deceitful operation, often known as “pig butchering,” where the scammers would first establish trust or romantic relationships with victims before convincing them to invest money through these apps. The term “pig butchering” metaphorically refers to the process of fattening a pig before slaughter, analogous to the way scammers build up their victims’ trust and investment before defrauding them.

The lawsuit filed by Google claims that the duo uploaded 87 fake apps, which were downloaded by over 100,000 individuals. Victims of these scams reported losses ranging from $100 to several tens of thousands of dollars. Following user complaints, Google identified these apps as fraudulent and removed them from the Play Store. Google’s litigation represents a significant move to hold these perpetrators accountable and emphasizes the company’s commitment to protecting its users and the integrity of its app store. Google also mentioned that the fraudulent scheme caused it to suffer economic damages exceeding $75,000 due to the resources spent investigating the fraud.

According to Google’s legal filing, the accused utilized these fake apps to impersonate legitimate cryptocurrency investment platforms, misleading both the users and Google’s Play Store with false representations, including their geographical locations. The alleged scammers engaged potential victims through various means, including romantic messages and YouTube videos, eventually encouraging them to download the fraudulent apps and invest money.

Google’s complaint outlines how the scammers maintained the illusion of legitimacy by displaying fake balances and returns on the victims’ investments. However, when users attempted to withdraw their funds, they either received only a fraction of their money, were asked to pay additional fees, or were told they needed to reach a minimum balance, ultimately resulting in financial losses.

The lawsuit accuses the developers of violating Google’s terms of service and the Racketeer Influenced and Corrupt Organizations Act, seeking to prevent them from further fraudulent activities and to obtain damages for the harm caused.

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