A resident of Florida filed a lawsuit against Google Play, accusing the company of hosting a fraudulent application that resulted in the theft of over $5 million in cryptocurrency. The lawsuit alleges that Google was notified about the malicious app by the consumer financial protection office (CFPB), but it took three months for the app to be removed from the store.
The victim, Maria Vaka, downloaded the Yobit Pro application in February 2023 and invested approximately $4.6 million in cryptocurrency. When she attempted to withdraw her funds, the app demanded an additional $500 thousand for supposed “taxes.” Subsequently, after payment, Vaka requested $2 million more, prompting her to realize she had fallen victim to a cryptocurrency scam. She reported the incident to the authorities, leading to an investigation by the police and CFPB.
Vaka argues in her claim that Google bears responsibility for her financial losses as she placed trust in the security of applications available on Google Play. She further notes that at least five other users encountered similar issues with the Yobit Pro app, with over 12 thousand installations in total.
Google has previously taken action against fraudulent cryptocurrency applications, including filing a lawsuit in April 2023 against two developers responsible for 87 fake apps that harmed over 100 thousand users globally. The tech giant acknowledges that the proliferation of such scams tarnishes the reputation of its platform, underscoring the importance of user trust in app security.
As Vaka pursues legal action in California Court, Google’s legal team seeks to transfer the case to the Federal Court of the Northern District of California. Vaka is seeking a minimum of $5 million in compensation to cover her losses, highlighting the impact of the fraud on her real estate business, which she had worked on building throughout her life.
This case brings attention to the issue of app security in digital stores and the accountability of large corporations in safeguarding users from fraudulent activities.