Key Points
- Florida woman Maria Vaca is suing Google for $5 million after losing her cryptocurrency investment to a scam app downloaded from the Google Play Store.
- The lawsuit alleges that Google took three months to remove the malicious app despite receiving complaints that potentially affected thousands of users.
Florida Woman Falls Victim to Crypto Scam
Maria Vaca, a Florida resident, has filed a lawsuit against tech giant Google in California. She claims she lost over $5 million in cryptocurrency due to a malicious app downloaded from the Google Play Store. The app appeared to be a legitimate cryptocurrency trading platform, leading Vaca to invest approximately $4.6 million between February and July 2023.
Vaca’s experience took a dark turn when she attempted to withdraw funds after the app showed a balance of about $7 million. The app demanded an additional $500,000 for “taxes,” which Vaca paid. However, when faced with another request for $2 million, Vaca became suspicious and refused to comply.
Threats and Delayed Action
The situation escalated dramatically when Vaca received threatening messages on WhatsApp from unidentified cybercriminals, who allegedly threatened to kill her if she didn’t make the additional deposit. Alarmed, Vaca contacted law enforcement and filed a complaint with the Consumer Financial Protection Bureau (CFPB).
Despite the CFPB forwarding the complaint to Google immediately, the lawsuit claims that Google took three months to remove the app from the Play Store. This delay potentially exposed thousands more users to the scam, with the lawsuit alleging that approximately 12,759 Android users installed the app and at least five others had similar experiences to Vaca.
Legal Action and Allegations
Vaca’s lawsuit accuses Google of negligence, promissory estoppel, and breach of California’s false advertising and consumer protection laws. The core of her claim is that Google failed to adequately vet the app and protect users despite advertising the Play Store as a secure platform for downloading applications.
“As a result of Google’s material misrepresentations and other deceptive conduct, Ms. Vaca has been significantly damaged, including, but not limited to, financial losses of more than $5 Million, severe emotional and psychological distress, and the loss of the real estate business she spent most of her adult life trying to build,” the lawsuit states.
Broader Implications
This case highlights the ongoing challenges in regulating and securing cryptocurrency-related applications in major app stores. In April, Google took legal action against an alleged ring dedicated to similar cryptocurrency scam apps, which often resemble legitimate apps until users attempt to withdraw funds.
As the case unfolds, it may have significant implications for app store providers’ responsibilities in vetting and monitoring the applications they host, especially those dealing with financial transactions and cryptocurrencies.
The lawsuit is currently pending, with Google’s attorneys requesting that the case be moved to the United States District Court for the Northern District of California. As this story develops, it will likely draw attention to the broader issues of cybersecurity, consumer protection, and the regulation of cryptocurrency-related technologies in app marketplaces.
