App Store Has Substantial Fraud Protection, says Apple

In late May, Apple released figures that reportedly show its App Store prevented more than $9 billion in fraudulent transactions over the past five years, according to Sarah Perez on TechCrunch.

In 2024 alone,  nearly two million risky app submissions were blocked before they were published, according to the company.

Apple’s release of this data shortly before its annual Worldwide Developers Conference was intended to highlight the benefits of selling software through its App Store and to send a message about “what developers will face if they try to go it alone on mobile payments,” according to TechCrunch.

The Apple announcement came shortly after Apple lost a lawsuit brought by Fortnite maker EpicGames. As a result, US app developers have the right to link payment procedures within their own apps, thereby bypassing Apple’s hefty commission.

Larger apps, such as Fortnite, Spotify, and Amazon Kindle, quickly took advantage of that option; however, smaller apps may be inclined to weigh the relief from the commission against the possibility of fraud and other potential risks addressed by Apple.

These risks, the company maintains, include data theft, app piracy, and the creation of fraudulent accounts. Apple states that last year it blocked more than 10,000 illegitimate apps, including malware, pornography, and gambling apps, as well as pirated versions of legitimate apps.

Apple has long argued that its App Store commissions cover far more than just payment processing, citing security, fraud prevention, hosting, and distribution.

Data from RevenueCat indicates that small businesses, which pay the lower 15 percent commission to Apple, are unlikely to benefit from switching to their own payment systems.