- Google has filed a lawsuit against two individuals for allegedly uploading fraudulent crypto apps to its Google Play store
- The court filing reveals the scheme orchestrated by defendants Yunfeng Sun and Hongnam Cheung, targeting victims with deceptive investment promises
- Victims were persuaded to download investment apps from Google Play, falsely claiming high returns, resulting in financial losses
Google has sued two individuals it says uploaded fraudulent crypto apps to its Google Play store which resulted in losses for those who downloaded it. A recent court filing has uncovered the fraud scheme, allegedly orchestrated by defendants Yunfeng Sun, also known as “Alphonse Sun,” and Hongnam Cheung, alias “Zhang Hongnim” and “Stanford Fischer.” Victims were encouraged to download purported investment apps from Google Play, promising lucrative returns that ultimately turned out to be deceptive.
Investment Scam Apps Used
Google alleges that Sun and Cheung, along with other unidentified co-conspirators, engineered the apps to display fictitious returns, enticing victims to wire them money for the ‘investment.’ however, when victims attempted to withdraw funds, they were reportedly subjected to demands for additional fees under the guise of facilitating withdrawals. These techniques are common in crypto investment scams.
Despite Google’s efforts to combat the scheme by suspending fraudulent apps, the defendants persistently uploaded new ones, resulting in financial losses to at least approximately 100,000 users. The scheme not only defrauds consumers but also poses a threat to Google’s platform integrity, necessitating costly investigations and remediation efforts.
Fake Google Play ads aren’t anything new, with the company having had to tackle the scourge since at least 2019.
Scammers Used Social Media to Entice Victims
The pair are accused of using various means to target unsuspecting victims, utilizing text messaging campaigns, initiating conversations with potential victims, and gradually building trust to convince them to invest in their fraudulent apps. They also created persuasive online videos, disseminating false information about the legitimacy and profitability of their investment platforms, and employed affiliate marketing strategies, enticing users to become affiliates and promoting their apps as easy ways to earn money.
Once victims downloaded the apps, they were presented with interfaces designed to appear legitimate, falsely showing investment balances and returns. However, when victims attempted to withdraw their funds, they encountered numerous obstacles; some were told they needed to pay additional fees or maintain minimum balances, while others received no response at all from purported customer service lines.
Despite Google’s efforts to combat fraudulent behavior, the defendants persisted in creating new fraudulent apps, exploiting vulnerabilities in the system. This ongoing scheme resulted in significant financial losses for victims, highlighting the need for continued vigilance and enforcement measures to protect users from online scams.
