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A blog written for those whose interests more or less match mine.

Apple’s tightly controlled App Store is teeming with scams

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Reed Albergotti and Chris Alcantaran report in the Washington Post:

Apple chief executive Tim Cook has long argued it needs to control app distribution on iPhones, otherwise the App Store would turn into “a flea market.”

But among the 1.8 million apps on the App Store, scams are hiding in plain sight. Customers for several VPN apps, which allegedly protect users’ data, complained in Apple App Store reviews that the apps told users their devices have been infected by a virus to dupe them into downloading and paying for software they don’t need. A QR code reader app that remains on the store tricks customers into paying $4.99 a week for a service that is now included in the camera app of the iPhone. Some apps fraudulently present themselves as being from major brands such as Amazon and Samsung.

Of the highest 1,000 grossing apps on the App Store, nearly two percent are scams, according to an analysis by The Washington Post. And those apps have bilked consumers out of an estimated $48 million during the time they’ve been on the App Store, according to market research firm Appfigures. The scale of the problem has never before been reported. What’s more, Apple profits from these apps because it takes a cut of up to a 30 percent of all revenue generated through the App Store. Even more common, according to The Post’s analysis, are “fleeceware” apps that use inauthentic customer reviews to move up in the App Store rankings and give apps a sense of legitimacy to convince customers to pay higher prices for a service usually offered elsewhere with higher legitimate customer reviews.

Two-thirds of the 18 apps The Post flagged to Apple were removed from the App Store.

The most valuable company in U.S. history, Apple is facing unprecedented scrutiny for how it wields its power and is fighting to hold onto it, including in a blockbuster trial that concluded last month. Regulators and competitors have zeroed in on the App Store in particular: Unlike app stores on other mobile operating systems, Apple’s store faces no competition and is the only way for iPhone owners to download software to their phones without bypassing Apple’s restrictions. Through it, Apple keeps a tight grip on software distribution and payments on its mobile operating system, called iOS.

Apple has long maintained that its exclusive control of the App Store is essential to protecting customers, and it only lets the best apps on its system. But Apple’s monopoly over how consumers access apps on iPhones can actually create an environment that gives customers a false sense of safety, according to experts. Because Apple doesn’t face any major competition and so many consumers are locked into using the App Store on iPhones, there’s little incentive for Apple to spend money on improving it, experts say.

[He believed Apple’s App Store was safe. Then a fake app stole his life savings in bitcoin]

“If consumers were to have access to alternative app stores or other methods of distributing software, Apple would be a lot more likely to take this problem more seriously,” said Stan Miles, an economics professor at Thompson Rivers University in British Columbia, Canada. . .

Continue reading. There’s much, much more. Apple’s responses are evasive and defensive and Apple employees seem to have been forbidden to comment (except for those employees paid to lie).

Later in the article:

Apple says it is constantly improving its methods for sniffing out scams and usually catches them within a month of hitting the App Store. In a recent news release, Apple said it employed new tools to verify the authenticity of user reviews and last year kicked 470,000 app developer accounts off the App Store. Developers, however, can create new accounts and continue to distribute new apps.

Apple unwittingly may be aiding the most sophisticated scammers by eliminating so many of the less competent ones during its app review process, said Miles, who co-authored a paper called “The Economics of Scams.” [Typical of meme evolution when a selection process eliminates some memes: the surviving memes adapt to evade being selected out — cf. in lifeform evolution how widespread use of antibiotics leads to the rise of antibiotic-resistant bacteria. – LG]

“If people do believe or are not worried about being scammed, then there’s going to be a lot of victimization,” he said. Miles also said Apple could warn consumers that some apps “are probably fraud and so buyer beware and you do your homework before you buy the app and don’t trust our store.”

And later:

The prevalence of scams on Apple’s App Store played a key role at trial. Apple’s lawyers were so focused on the company’s role in making the App Store safe that Epic’s attorneys accused them of trying to scare the court into a ruling in favor of Apple.In other internal emails unearthed during trial that date as far back as 2013, Apple’s PhilSchiller, who runs the App Store, expressed dismay when fraudulent apps made it pastApp Store review.

[Apple is lobbying against a bill aimed at stopping forced labor in China]

After a rip-off version of theTemple Run video game became the top-rated app, according to Schiller’s email exchange, he sent an irate message to two other Apple executives responsible for the store. “Remember our talking about finding bad apps with low ratings? Remember our talk about becoming the ‘Nordstroms’ of stores in quality of service? How does an obvious rip off of the super popular Temple Run, with no screenshots, garbage marketing text, and almost all 1-star ratings become the #1 free app on the store?” Schiller asked his team. “Is no one reviewing these apps? Is no one minding the store?” Apple declined to make Schiller available to comment.At trial, Schiller defended the safety of the app store on the stand. The app review process is “the best way we could come up with … to make it safe and fair.”

Eric Friedman, head of Apple’s Fraud Engineering Algorithms and Risk unit, or FEAR, said that Apple’s screening process is “more like the pretty lady who greets you with a lei at the Hawaiian airport than the drug sniffing dog,” according to a 2016 internal email uncovered during the Epic Games trial. Apple employs a 500-person App Review team, which sifts through submissions from developers. “App Review is bringing a plastic butter knife to a gun fight,” Friedman wrote in another email. Apple declined to make Friedman available to comment. In deposition testimony, Friedman pointed to investments Apple has made to stop fraud. “A lot has changed in the last five years,” he said.

Though the App Store ratings section is filled with customer complaints referring to apps as scams, there is no way for Apple customers to report this to Apple, other than reaching out to a regular Apple customer service representative. Apple used to have a button, just under the ratings and reviews section in the App Store, that said “report a problem,” which allowed users to report inappropriate apps. Based on discussions among Apple customers on Apple’s own website, the feature was removed some time around 2016. Sainzsaid customers can still report apps through other channels.

And there’s much more. It’s a long article and it shows just what a bad job Apple is doing. Part of that may be because Apple gets a heft cut of money spent in the App Store and so doesn’t really care to police it effectively: they make money in either case.

Written by Leisureguy

6 June 2021 at 12:49 pm

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