Apple Cracks Down on Scam Apps Following $9.5 Million Crypto Theft

Apple’s App Store Review team faced a challenging day on Tuesday, pulling two previously approved apps due to fraudulent activities. One app stole millions in cryptocurrency from users, while the other harvested sensitive user data.

Fake Cryptocoin App Steals Millions from Multiple Users

CoinDesk revealed that over 50 users fell victim to a scam involving a Mac App Store app posing as Ledger Live, a legitimate crypto wallet app. The fake app, which stole a total of $9.5 million in assets within a week, prompted users to provide their seed phrases, a tactic never used by genuine cryptocurrency apps.

The stolen cryptocurrency was funneled through the KuCoin crypto exchange using a service called AudiA6. ZachXBT, who uncovered the scam, hinted at a possible class-action lawsuit against Apple for the substantial losses incurred by users.

Apple Removes Data Harvesting App Freecash from App Store

Apple’s troubles continued as they also removed a data harvesting app named Freecash from the App Store. This app, which gained popularity on TikTok, deceived users into divulging personal information in exchange for rewards.

A Malwarebytes report highlighted the app’s data collection practices, including sensitive information like race, religion, and health. It essentially acted as a data broker connecting game developers with users willing to spend money on mobile games.

Wired and TechCrunch raised concerns about the app’s misleading marketing and extensive data collection. Notably, Freecash had been previously removed from the App Store in 2024 but resurfaced under a different developer account.

Apple swiftly removed Freecash from the App Store after inquiries from TechCrunch. The app’s removal aligned with App Store Review Guidelines prohibiting scams, deceptive marketing, and misleading practices.

Almedia, the app developer, denied allegations of unethical practices, asserting compliance with platform policies. Nevertheless, the removal of Freecash underscored Apple’s commitment to maintaining a secure and trustworthy app ecosystem.

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