Apple Highlights How the App Store Prevents Fraud Amid Legal Battle With Epic Games

Apple today announced that, through a combination of automated technologies and human review processes, the company protected customers from more than $1.5 billion in potentially fraudulent transactions in 2020.

app store blue banner
Apple said secure payment technologies like Apple Pay and StoreKit (In-App Purchase) play an essential role in keeping users safe:

With online data breaches frustratingly common, these protections are an essential part of keeping users safe. But users may not realize that when their credit card information is breached or stolen from another source, fraudsters may turn to online marketplaces like the App Store to attempt to purchase digital goods and services that can be laundered or used for illicit purposes.

Apple focuses relentlessly on this kind of fraud as well. In 2020 alone, the fusion of sophisticated technology and human review prevented more than 3 million stolen cards from being used to purchase stolen goods and services, and banned nearly 1 million accounts from transacting again. In total, Apple protected users from more than $1.5 billion in potentially fraudulent transactions in 2020.

Apple shared a variety of additional statistics that aim to emphasize the security and privacy of the App Store, amid a high-profile trial with Fortnite creator Epic Games, which has described the App Store as a monopoly and anti-competitive. Apple said thanks to its "industry-leading antifraud efforts," the App Store is "the safest place to find and download apps," citing Nokia's 2020 Threat Intelligence Report.

Key Statistics

  • In 2020, Apple protected customers from more than $1.5 billion in potentially fraudulent transactions.
  • In 2020, nearly 1 million problematic new apps, and an additional nearly 1 million app updates, were rejected or removed from the App Store.
  • In 2020, more than 48,000 apps were rejected for containing hidden or undocumented features, and more than 150,000 apps were rejected because they were found to be spam, copycats, or misleading to users.
  • In 2020, about 95,000 apps were removed from the App Store for fraudulent violations, predominantly for bait-and-switch maneuvers.
  • In 2020, over 215,000 apps were rejected for privacy violations.
  • Apple terminated 470,000 developer accounts in 2020 and rejected an additional 205,000 developer enrollments over fraud concerns.
  • In the last month, Apple blocked more than 3.2 million instances of apps distributed illicitly through the Apple Developer Enterprise Program.

Apple said its goal is always to get new apps onto the App Store, with the company's App Review team assisting more than 180,000 new developers in launching apps in 2020. In some cases, an app might be unfinished or not functioning properly when it's submitted for approval, or it might not yet have a sufficient mechanism for moderating user-generated content. In 2020, nearly one million problematic new apps, and an additional nearly one million app updates, were rejected or removed for a range of reasons like those, according to Apple.

A smaller but significant subset of these rejections were for more egregious violations that could harm users. In 2020, Apple said its App Review team rejected more than 48,000 apps for containing hidden or undocumented features, while more than 150,000 apps were rejected because they were found to be spam, copycats, or misleading to users in ways such as manipulating them into making a purchase.

Some developers perform a "bait and switch" by fundamentally changing how the app works after the review process to evade the App Store Review Guidelines, according to Apple. When such apps are discovered, Apple said they are rejected or removed immediately from the App Store, and developers are notified of a 14-day appeals process before their Apple Developer Program accounts are permanently terminated.

In 2020, about 95,000 apps were removed from the App Store for fraudulent violations, including bait-and-switch maneuvers, according to Apple.

Apple said it terminated 470,000 developer accounts in 2020, and rejected an additional 205,000 developer enrollments over fraud concerns. The company also deactivated 244 million customer accounts due to fraudulent and abusive activity.

As for App Store reviews and ratings, Apple said it relies on a combination of machine learning, artificial intelligence, and human review by expert teams to moderate these ratings and reviews to help ensure accuracy. Since 2020, Apple said it has processed over one billion ratings and over 100 million reviews, and over 250 million ratings and reviews were removed for not meeting moderation standards.

Apple said it also recently deployed new moderation tools to verify rating and review account authenticity, to analyze written reviews for signs of fraud, and to ensure that content from deactivated accounts is removed.

During its trial against Epic Games, Apple has argued that a single, curated App Store is necessary to protect the security, privacy, reliability, and quality that customers have come to expect from the company. Epic Games, meanwhile, has argued that Apple should allow third-party app stores and direct payment options on the iPhone and iPad.

Top Rated Comments

I7guy Avatar
25 months ago
Considering how many apps are in the app store and there is no way to lock down the app store completely without encumbering devs and users Apple does a pretty good job.:apple:
Score: 10 Votes (Like | Disagree)
ArtOfWarfare Avatar
25 months ago
That's a lot of numbers with no context. How does it compare against how well other stores are addressing fraud?

Apple needs to be justifying why their store should be the only store on iOS. They don't need to merely prove that they're doing something - I don't think I ever accused Apple of doing absolutely nothing - they need to prove that they're doing significantly more than anyone else is capable of. They need to prove that by permitting downloads to come from elsewhere, there'd be a substancial increase in fraud.

As is, tons of fraud still happens on the App Store. As Apple's own executives say, it's almost as if the review process doesn't exist there's so much junk that gets through.

===

Has anyone else noticed that MacRumor's coverage of this trial doesn't look like the coverage from anywhere else? Reading MR, you'd think that Apple is winning and Epic's lawyers are totally incompetent. Reading coverage from any mainstream newsite, you'd get the opposite impression.
Score: 7 Votes (Like | Disagree)
applicious84 Avatar
25 months ago
.
Score: 6 Votes (Like | Disagree)
TheYayAreaLiving ? Avatar
25 months ago
Apple is going to win! Give it up EPIC.

EPIC Fail battle.
Score: 6 Votes (Like | Disagree)
Krizoitz Avatar
25 months ago

Well thank you Daddy Apple from protecting me from scam apps & fraud. Whatever would we have done before you came along to save us.

Oh wait......
I’ll never understand this mentality. Apple isn’t forcing you to use its products, nor are they hiding what they do. It’s no secret that the AppStore is the only way to get apps on iOS. If that’s such a horrible thing to you it’s easy to not have to deal with it, don’t get an iPhone.
Score: 4 Votes (Like | Disagree)
I7guy Avatar
25 months ago

Just $1.5B in "potentially fraudulent transactions in 2020"? That's an order of magnitude (or worse) less than the amount of money Apple charged iOS users for their "services". This indicates that humanity would definitely be better off without Apple services.
Seems to indicate that humanity is better off for their services. Glass half-empty or half-full, I guess.
Score: 4 Votes (Like | Disagree)

Popular Stories

iOS 17 on Phone Feature

Gurman: iOS 17 to Provide Several 'Most Requested Features'

Sunday March 26, 2023 6:05 am PDT by
Apple changed the strategy for iOS 17 later in its development process to add several new features, suggesting that the update may be more significant than previously thought, Bloomberg's Mark Gurman reports. In January, Gurman said that iOS 17 could be a less significant update than iPhone updates in previous years due to the company's intense focus on its long-awaited mixed-reality...
iOS 16

iOS 16.4 Will Add These 8 New Features to Your iPhone

Sunday March 26, 2023 8:06 am PDT by
Following nearly six weeks of beta testing, iOS 16.4 is expected to be released to the public as soon as this week. The software update includes a handful of new features and changes for the iPhone 8 and newer. To install an iOS update, open the Settings app on the iPhone, tap General → Software Update, and follow the on-screen instructions. Below, we have recapped eight new features and...
apple mixed reality headset concept by david lewis and marcus kane

Some Apple Employees Seriously Concerned About Mixed-Reality Headset as Announcement Draws Closer

Sunday March 26, 2023 8:25 am PDT by
Some Apple employees are concerned about the usefulness and price point of the company's upcoming mixed-reality headset, The New York Times reports. Apple headset concept by David Lewis and Marcus Kane Initial enthusiasm around the device at the company has apparently become skepticism, according to eight current and former Apple employees speaking to The New York Times. The change of tone...
iOS 16

Apple Releases iOS 16.4 With New Emoji, Safari Web Push Notifications, Beta Changes, Voice Isolation for Calls and More

Monday March 27, 2023 10:03 am PDT by
Apple today released iOS 16.4, the fourth major update to the iOS 16 operating system that initially came out last September. iOS 16.4 comes two months after the launch of iOS 16.3, an update that added Security Keys for Apple ID. iOS 16‌.4 and iPadOS 16.4 can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. It can take a few minutes...
Steve Jobs Theater dusk

Apple Reportedly Demoed Mixed-Reality Headset to Executives in the Steve Jobs Theater Last Week

Sunday March 26, 2023 5:53 am PDT by
Apple showcased its mixed-reality headset to the company's top 100 executives in the Steve Jobs Theater last week, according to Bloomberg's Mark Gurman. In the latest edition of his "Power On" newsletter, Gurman explained that the "momentous gathering" is a "key milestone" ahead of the headset's public announcement planned for June. The event was intended to rally Apple's top members of...
top stories 25mar2023

Top Stories: iPhone 15 Pro Design Leak, iOS 16.4 Coming Soon, and More

Saturday March 25, 2023 6:00 am PDT by
We're still almost six months away from the official unveiling of the iPhone 15 lineup, but it seems like every day we're learning more about what to expect from the next-generation models. Notably, this week gave us our clearest look yet at what appear to be some changes for the volume and mute control hardware. iOS 16.4 and associated releases are also right around the corner with some new ...
apple tv 4k red image

Apple Releases tvOS 16.4 for Apple TV 4K and Apple TV HD

Monday March 27, 2023 10:00 am PDT by
Apple today released tvOS 16.4, the fourth major point update to the tvOS 16 operating system that came out last September. Available for the Apple TV 4K and Apple TV HD, tvOS 16.4 comes two months following the release of tvOS 16.3. The tvOS 16.4 update can be downloaded over the air through the Settings app on the ‌‌‌‌Apple TV‌‌‌‌ by going to System > Software Update....