FTC lawsuit exposes subscription scam networks evading app store enforcement

A new lawsuit filed by the US Federal Trade Commission (FTC) showcases the challenges of policing app stores for scammy apps. The suit alleges that Genesis Tech defrauded consumers and routed revenues overseas through shell companies designed to conceal its identity and hide its assets. Genesis Tech's network allegedly included subsidiaries incorporated in Cyprus and operating in Ukraine, which marketed apps to US consumers.

Among its brands were fitness and nutrition apps MadMuscles, Harna, and Unimeal by Amoapps Limited; PDF Guru and PDF Master from Gurudocs Limited; fashion app Lumi from Bramol Limited; horoscope app Nebula by Obrio Limited; habit and personal productivity apps under the brand Wisey by Koflimin Limited; and others. From early 2023 to mid-2025, these five companies' product offerings accounted for nearly a quarter of a billion dollars in global revenue. The suit also notes that, in the 12 months ending in September 2025, transactions through all the company's connected PayPal accounts totalled nearly $700 million.

The case highlights a growing challenge for Apple and Google, as subscription scams evolve beyond individual apps into intricate networks of shell companies. Genesis Tech registered new corporate entities and created multiple merchant accounts to hide its identity, the suit claims, and would then transfer money across borders among its various corporate affiliates. By continually making new accounts, the app publisher was able to avoid fraud monitoring programs for years, the FTC explains.

Like other scammy subscription apps plaguing today's app stores that have drawn scrutiny from regulators and consumer advocates, Genesis Tech's products made it easy to sign up but hard to cancel. While the company promoted its products as free or low-cost, consumers who signed up would instead be met with auto-renewing subscriptions. At times, the company would also charge customers for extra products without their knowledge or consent or even double-charge them.

The company also made cancellation difficult by omitting cancellation options from its websites and apps, and would often continue charging customers without authorization, the FTC's suit says. Genesis Tech's practices violate the FTC Act and the Restore Online Shoppers' Confidence Act (ROSCA), the complaint says. It also names Stamatis Skianis, Oksana Kucher, Iryna Oleksyn, Olga Garbuzenko, Rostyslav Ivanitsa, and Viktoriia Savchuk as co-defendants in the case, which will be tried in the US District Court for the Northern District of California.

TechCrunch reached out to Genesis Tech for comment through the publicly available email addresses for the subsidiaries named in the case. A comment was not immediately provided. The FTC has taken mobile app makers to court before, having investigated and settled cases with the anonymous teen Q&A app NGL, dating app giant Match, gig app Handy, kids' app maker HyperBeard, and adjacent players, like mobile ad company Tapjoy or data broker X-Mode, among others.