FTC Sues Genesis Tech for Evading App Store Enforcement with Complex Scam Network

The US Federal Trade Commission has filed a lawsuit against Genesis Tech, a company accused of operating a complex scam network that evades app store enforcement.

According to the FTC, Genesis Tech defrauded consumers through its various subsidiaries, which were incorporated in Cyprus and operated in Ukraine. These subsidiaries marketed their apps to U.S. consumers, generating nearly a quarter of a billion dollars in global revenue from 2023 to mid-2025.

The case highlights a growing challenge for Apple and Google, as subscription scams evolve beyond individual apps into intricate networks of shell companies. Genesis Tech's practices allegedly included registering new corporate entities and creating multiple merchant accounts to hide its identity, then transferring money across borders among its various corporate affiliates.

By continually making new accounts, the app publisher was able to avoid fraud monitoring programs for years, the FTC explains. The company's practices also made it difficult for consumers to cancel their subscriptions, with some being charged extra products without their knowledge or consent, or even double-charged.

The FTC's suit names Stamatis Skianis, Oksana Kucher, Iryna Oleksyn, Olga Garbuzenko, Rostyslav Ivanitsa, and Viktoriia Savchuk as co-defendants in the case, which will be tried in the U.S. District Court for the Northern District of California.

The FTC has taken mobile app makers to court before, having investigated and settled cases with various companies, including NGL, Match, Handy, and HyperBeard.

Genesis Tech's products included fitness and nutrition apps, PDF editors, a fashion app, a horoscope app, and habit and personal productivity apps.

The company's practices violate the FTC Act and the Restore Online Shoppers' Confidence Act (ROSCA), the complaint says.

• The FTC has taken a proactive approach to addressing the issue of subscription scams in the app stores, but the Genesis Tech case highlights the complexity of the problem.

A comment from Genesis Tech was not immediately provided, and the company's email addresses were not available for public comment.

The case is a reminder that the app stores are not immune to scams, and that consumers must be cautious when downloading apps and signing up for subscriptions.