Australian consumers have lost at least $400,000 to a scam smartphone app, with Australia’s ‘Big 4’ banks left to mop up the aftermath.
The hoax app, called the Hope Business App or the Hope Group Earning App, promised users wealth creation and spread virally through May.
Instead, the app was a Ponzi scheme that generated ‘returns’ for investors by luring new investors to part with their cash.
The Australian Competition and Consumer Commission (ACCC) said its Scamwatch team received 84 reports between 8 May 2021 and 3 June 2021 regarding the Hope Business app.
An ACCC spokesperson told iTnews approximately $400 000 has been reported in losses from consumers.
The competition regulator brought the app to the attention of Google and Apple in May 2021 following reports from the public, leading to its removal from app stores.
“The ‘Hope Business’ app is a scam. Victims were encouraged to transfer funds in a Ponzi…