Jim Winsett of the BBB. Q. I am being deluged with retail apps on my iPhone. Are all of these offers legitimate?
A. Your experience is like many others; this year holiday shoppers are confronted with a growing online menace of phony retail apps. Recent reports have indicated a wave of apps pretending to represent large chains is surging toward iPhone users. Dollar Tree, Foot Locker, Zappos, Dillard's and even luxury brands such as Christian Dior and Salvatore Ferragamo are being misrepresented by scammers who create the fake apps in their names. The Better Business Bureau is alerting consumers to be on the lookout for the imposters and try to minimize the harm they want to do to unsuspecting shoppers.
The first retailer to use a mobile app was Starbucks. It launched the app in 2009 and it immediately took off with consumers. Today millions use it. Other retailers paid attention and the app trend caught up with them as well. Unfortunately, scammers do not miss opportunities like this and recently hundreds of fake apps have been reported in Apple's app store.
These counterfeit apps are being produced with varying purposes. Some seem relatively harmless, simply annoying those who use them by serving as an outlet for junky pop-up ads. Some are much more malicious.
Users may be prompted to enter their credit card or bank information, setting themselves up for financial fraud. Facebook log-in information may be requested, thereby exposing your sensitive personal information. Some fake apps can contain malware that can steal personal information from your device. Others have been known to lock up one's phone until the user pays a ransom.
The fake apps usually come from developers in China. They have proven themselves capable of slipping through Apple's reviewing process for new apps, making them appear to be legitimate retailer apps in the Apple Store. (Reportedly some of the apps have gotten through by changing their content after being approved by Apple's vetting system.)
There are steps shoppers can take in order to deter the fake-app threat. It's important that consumers remember these tips. Avoid getting so caught up in the holiday shopping frenzy that you let your guard down. Here's what the BBB advises:
Be cautious when deciding to download an app. First, check the retailer's website for a link to their app.
Never click on a link in an email to download a new app. You do not know if the email is really from the retailer they claim to represent. A favorite phishing scam is to send emails that look legitimate, hoping the receiver will fall for the bait and click on a link within it.
Before downloading, check an app's reviews. If there are few or negative reviews, don't take a chance on the app. Some scammers use fake reviews. They are usually short and generic in nature.
Think twice before linking your credit card to any app. Give as little personal information as possible when prompted for such by the app. Think identity theft.
Keep your smartphone's security programs up to date. Immediately download any security update. Consider installing anti-virus software.
The lure of retail apps is great and the rewards and convenience can be hard to resist. But watch out for app scammers. They are seeking a whole different type of reward - at your expense.
To view additional consumer tips for the holidays, visit bbb.org. To check or report scam and fraud activity in your area, go to bbb.org/scamtracker.
Jim Winsett is president of the Better Business Bureau in Chattanooga.