Their main operation employed various tactics to lure unsuspecting users into investing money through these apps. This included text message campaigns, online promotional videos on platforms like YouTube, and affiliate marketing schemes that offered commissions for signing up new users.
The scammers apparently designed the apps to appear legitimate, displaying user balances and supposed investment returns. However, when users attempted to withdraw their funds or profits, they were either prevented from doing so or told to pay additional fees or maintain a minimum balance. In some cases, the scammers allowed small initial withdrawals to gain users’ trust, only to later deny larger withdrawal requests.
The Fatal Realization
The case was first put into public light by alerts from the victims, who chimed in to Google’s dedicated cybersecurity team about the issue. They got immediately concerned after unsuccessfully trying to withdraw their funds. In response, Google shut down the fraudulent apps. However, the scammers simply created new ones, using various techniques to obscure their identities and deceive the company.
Google’s general counsel Halimah DeLaine Prado stated in an interview with CNBC that such misuse of the company’s platforms to facilitate cryptocurrency scams will not be tolerated. The recent litigation is widely considered to be a crucial step to put an absolute stop to these seemingly endless operations. As such, the lawsuit presents ample opportunity for the company to brandish its digital prestige against these scammers, possibly setting a strong example for future cases.
In fact, despite having spent a considerable amount investigating these scams and processing the aftermath, the company seems to be far more concerned about reputation than anything else. After all, the Play Store’s integrity as a platform is crucial for maintaining its user base, and to prevent losses incurred by legitimate controversies over its operations.
Google’s Ultimatum
Google’s primary legal move right now is to bring civil claims under the Racketeer Influenced and Corrupt Organizations (RICO) law and breach of contract claims against the scammers. The company seeks a permanent injunction against the defendants, general damages, and to prevent them and their employees from creating Google accounts and accessing its services in the future.
It has been said time and again, but users must always exercise utmost caution when availing of these apps, even from seemingly trusted sources like the Google Play Store. A thorough research before committing any funds is always warranted, and if not ultimately sure, never put all your eggs in just one basket.
As for the lawsuit itself, its outcome may indeed have implications for the wider cryptocurrency industry. But as with any competition that breeds (technological) development on both sides, it’s always an arms race. Vigilance is a must.
