2024-04-09
American tech giant Google recently filed a lawsuit against two developers, Yunfeng Sun and Hongnam Cheung, for uploading nearly 90 fraudulent crypto investment applications on its online store, Google Play.
These applications were used to defraud unsuspecting victims, and Google claims that their fraud scheme affected approximately 100,000 users.
Despite Google's previous attempts to remove fraudulent apps from its Play Store, the alleged scammers found a way to upload more bogus apps.
In its complaint filed in the Southern District of New York, Google stated that Sun and Cheung employed three primary methods to deceive investors into downloading their fake apps.
First, the defendants used wrong number messages to initiate a conversation with the targeted victim.
They would then form a friendly or romantic relationship and convince the victim to download a fraudulent investment app from Google Play. One such app was a crypto exchange called TionRT, which was promoted as legitimate but turned out to be a fraudulent platform where investors could not make withdrawals and eventually lost their money.
The scammers also used online videos and affiliate marketing programs to convince investors that the crypto and investment apps on Google Play were genuine.
They made promises of high returns, which Google described as "illusionary." To string investors along, the defendants allowed small withdrawals but made further attempts to withdraw funds impossible. They would also require fees or ask investors to maintain a minimum balance, even though victims were still unable to make withdrawals.
According to Google's complaint, Sun, Cheung, and their associates have been carrying out this fraud scheme since 2019, uploading around 87 fraudulent apps on Google Play. Despite Google's efforts to remove these apps, the defendants continued to upload new ones using new aliases and infrastructure.
Approximately 100,000 users, including 8,700 in the United States, downloaded these fake apps, resulting in financial losses ranging from hundreds to tens of thousands of dollars per victim.
Google itself was also affected by the fraud scheme, as it undermined users' confidence in its services and platforms. The company claimed to have suffered financial damage of over $75,000 to investigate the breach of its platform and address the damage caused by the defendants.
In its lawsuit, Google accuses Sun, Cheung, and their associates of wire fraud, breaching contracts, and violating the Racketeer Influenced and Corrupt Organizations (RICO) Act.
The company is seeking a permanent injunction to prevent the defendants from accessing Google services, creating or maintaining any Google accounts, or using the company's products to promote any website, app, or product.
This lawsuit highlights the challenges tech companies face in combating fraudulent activities on their platforms.
Despite Google's efforts to protect its users, scammers continue to find ways to deceive and defraud unsuspecting individuals. It emphasizes the importance of user vigilance and the need for stricter measures to prevent such fraudulent schemes in the future.
