40 Percent Of iOS In App Purchases Are Fraudulent

In his email conversation with ThreadPost, Ted Kong, a marketing executive at Honk kong-based games developer Lakoo revealed that as much as 40% of the in-app purchases on the iOS version of their multiplayer games are fraudulent and that Apple is turning a deaf ear to users' and developers' complaints.

Lakoo has notified Apple several times since 2010 that fraudulent purchases are made through compromised iTunes accounts, but Apple didn't respond appropriately.

"As a developer, we are not the right party to help with the refund of the victims as Apple is the 'agent' for selling the IAPs (in-application purchases)," Kong wrote in one of the emails. "In most cases Apple would arrange the refund in a couple of days. Occasionally, some victims are reluctant to contact Apple and we have initiated a refund from our side too."

Lakoo has implemented in-game measures to restrict suspicious purchases and is improving them continuously.

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Not completely true and doesn't really matter to 99.999% of apps available by other means, the reason Apple doesn't care is because it doesn't affect them. From a legal stand point they are in the right for pointing out what they must, next thing we'll start seeing is companies suing people over $5 apps. I can't imagine the legal ball on that one.

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