Major App Store Scam: How the Genesis Tech Network Was Exposed

Major App Store Scam: How the Genesis Tech Network Was Exposed

The US Federal Trade Commission (FTC) has filed a lawsuit against Genesis Tech, one of the largest fraud networks in the mobile app market. This case demonstrates how complex and systematic the deception of users through subscription services has become in the modern technology world. The company is accused of illegally misappropriating hundreds of millions of dollars through a network of shell companies. This was reported by Techcrunch.com news reports.

According to FTC data, Genesis Tech used dozens of subsidiaries registered in Cyprus and operating in Ukraine to hide its true identity. This network included fitness apps such as MadMuscles, Harna, and Unimeal, services like PDF Guru and PDF Master, as well as the Nebula astrology and Wisey productivity apps. Five main subsidiaries alone generated nearly $250 million in revenue from 2023 to mid-2025.

Complex Concealment Scheme

This fraud network used extremely cunning methods to bypass the control systems of tech giants like Apple and Google. Genesis Tech constantly opened new legal entities and merchant accounts. In this way, they managed to evade anti-fraud monitoring programs for years. Funds were then vanished through various international transfers.

According to ixbt.com, in the 12-month period ending September 2025, total transactions through all PayPal accounts associated with the company reached $700 million. These figures confirm the vast scale of the fraud and the serious financial damage caused to ordinary users.

Impossibility of Unsubscribing

The main danger of Genesis Tech apps lay in their "trap" style of operation. Services were offered to users for free or at a very low price, but expensive subscriptions were automatically activated upon registration. Worst of all, the unsubscribe button was intentionally removed or hidden from the apps and websites. In many cases, money was deducted from customers for additional services without their permission, or they were charged twice for a single purchase.

This situation serves as an important warning for users in Uzbekistan as well. Such "smart" fraud schemes are increasing in the App Store and Google Play stores. Experts recommend checking the developer before downloading any app and avoiding linking bank cards to suspicious subscriptions. The case is currently being heard in the Northern District Court of California, where a group of individuals, including executives Stamatis Skianis and Oksana Kucher, are expected to be held accountable.

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Nodirbek Razzokov
«ZAMIN.UZ» editor

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