Apple posted a 54 per cent yearly increase in its March quarter sales to $89.6 billion. Bloomberg
Apple posted a 54 per cent yearly increase in its March quarter sales to $89.6 billion. Bloomberg
Apple posted a 54 per cent yearly increase in its March quarter sales to $89.6 billion. Bloomberg
Apple posted a 54 per cent yearly increase in its March quarter sales to $89.6 billion. Bloomberg

Apple prevents fraudulent transactions worth over $1.5bn on App Store in 2020


Alkesh Sharma
  • English
  • Arabic

Tech company Apple blocked potentially fraudulent transactions worth more than $1.5 billion on its App Store last year, the company said.

The iPhone manufacturer prevented the theft of money, confidential data and users’ time and kept nearly 1 million “risky and vulnerable” new apps away from customers.

“Threats have been present since the first day the App Store launched on iPhone and they have increased in both scale and sophistication in the years since,” Apple said.

“It takes significant resources behind the scenes to ensure these bad actors can’t exploit users’ most sensitive information, from location to payment details,” it added.

The use of apps surged in popularity amid the coronavirus-related travel restrictions as users turned online to work, study and be entertained.

Launched in 2008, the App Store is home to more than 1.8 million apps and is visited by over half a billion people each week across 175 countries. Sales worth $519bn were facilitated through the platform in 2019, consulting firm Analysis Group revealed in a June study supported by Apple.

Last year, the company said more than 180,000 new developers launched their apps on its platform, which had 1.5 billion active devices, compared to 1.4 billion in 2019.

But with increased usage of apps, security threats have also grown.

Apple's app review team rejected more than 48,000 apps for containing hidden or undocumented features and more than 150,000 apps were banned after they were found to be spam or to mislead in ways such as manipulating users into making a purchase.

The iPhone maker prevented more than 3 million stolen cards from being used to purchase goods and services and banned nearly 1 million accounts from transacting again.

To counter such threats, the company is offering secure payment technologies like Apple Pay and StoreKit, which are used by more than 900,000 apps to sell goods and services on the App Store.

Some developers also followed a bait-and-switch approach in an attempt to deceive the company, fundamentally changing how the app works after review to “evade guidelines and commit forbidden and even criminal actions”.

Last year, about 95,000 apps were removed from the App Store for fraudulent violations, mainly for bait-and-switch behaviour, Apple said.

“Apple has rejected or removed apps that switched functionality after initial review to become real-money gambling apps, predatory loan issuers  … used in-game signals to facilitate drug purchasing and rewarded users for broadcasting illicit content through video chat,” Apple said.

Launched in 2008, the App Store is home to more than 1.8 million apps. Courtesy Analysis Group
Launched in 2008, the App Store is home to more than 1.8 million apps. Courtesy Analysis Group

The company deactivated 244 million customer accounts due to fraudulent and abusive activity. In addition, 424 million attempted account creations were rejected because they displayed patterns consistent with fraudulent activity.

One of the common reasons why apps are rejected is because developers ask for more user data than they need or they intend to mishandle the data they collect, according to Apple. In 2020, it rejected over 215,000 apps for these privacy violations.

“Even with these stringent review safeguards in place, problems still surface,” the company said.

Users can report problematic apps by choosing the Report a Problem feature on the App Store or calling Apple Support.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Director: Kaouther Ben Hania

Rating: 4/5

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%3Cp%3ENon-oil%20trade%20between%20the%20UAE%20and%20Japan%20grew%20by%2034%20per%20cent%20over%20the%20past%20two%20years%2C%20according%20to%20data%20from%20the%20Federal%20Competitiveness%20and%20Statistics%20Centre.%C2%A0%3C%2Fp%3E%0A%3Cp%3EIn%2010%20years%2C%20it%20has%20reached%20a%20total%20of%20Dh524.4%20billion.%C2%A0%3C%2Fp%3E%0A%3Cp%3ECars%20topped%20the%20list%20of%20the%20top%20five%20commodities%20re-exported%20to%20Japan%20in%202022%2C%20with%20a%20value%20of%20Dh1.3%20billion.%C2%A0%3C%2Fp%3E%0A%3Cp%3EJewellery%20and%20ornaments%20amounted%20to%20Dh150%20million%20while%20precious%20metal%20scraps%20amounted%20to%20Dh105%20million.%C2%A0%3C%2Fp%3E%0A%3Cp%3ERaw%20aluminium%20was%20ranked%20first%20among%20the%20top%20five%20commodities%20exported%20to%20Japan.%C2%A0%3C%2Fp%3E%0A%3Cp%3ETop%20of%20the%20list%20of%20commodities%20imported%20from%20Japan%20in%202022%20was%20cars%2C%20with%20a%20value%20of%20Dh20.08%20billion.%3C%2Fp%3E%0A
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Fuel consumption: 6.9L/100km

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HUNGARIAN GRAND PRIX RESULT

1. Sebastian Vettel, Ferrari 1:39:46.713
2. Kimi Raikkonen, Ferrari 00:00.908
3. Valtteri Bottas, Mercedes-GP 00:12.462
4. Lewis Hamilton, Mercedes-GP 00:12.885
5. Max Verstappen, Red Bull Racing 00:13.276
6. Fernando Alonso, McLaren 01:11.223
7. Carlos Sainz Jr, Toro Rosso 1 lap
8. Sergio Perez, Force India 1 lap
9. Esteban Ocon, Force India  1 lap
10. Stoffel Vandoorne, McLaren 1 lap
11. Daniil Kvyat, Toro Rosso 1 lap
12. Jolyon Palmer, Renault 1 lap
13. Kevin Magnussen, Haas 1 lap
14. Lance Stroll, Williams 1 lap
15. Pascal Wehrlein, Sauber 2 laps
16. Marcus Ericsson, Sauber 2 laps
17r. Nico Huelkenberg, Renault 3 laps
r. Paul Di Resta, Williams 10 laps
r. Romain Grosjean, Haas 50 laps
r. Daniel Ricciardo, Red Bull Racing 70 laps