Apple Sued Again Over Fake Cryptocurrency App on App Store
Three customers have filed a lawsuit against Apple after allegedly losing nearly $2 million to a fake Sparrow Wallet app that was available on the App Store.
The plaintiffs claim that the app, which mimicked the legitimate Sparrow digital asset storage and trading application, was able to steal users' account credentials and divert their cryptocurrency assets to cybercriminals.
According to the lawsuit, Apple's failure to adequately review and monitor apps distributed on its platform contributed to the scam, which resulted in a combined loss of $1.8 million for the three plaintiffs.
The plaintiffs are accusing Apple of violating consumer protection laws in California, Louisiana, and Massachusetts, and bringing claims for fraudulent and negligent misrepresentation, fraudulent concealment, and failure to warn users about the risk of fake cryptocurrency apps appearing on the App Store.