iPhone Fraudulent charges via apple pay after app store purchase

[djc6]

A family member purcahsed this app "GluHealth: Blood Sugar Test AI", but the the 99 cent charge appeared from the publisher directly and not from apple.

https://apps.apple.com/us/app/gluhealth-blood-sugar-test-ai/id6738723802

A successful 99 cent charge after downloading the app appeared on credit card as this website in the country of Cyprus:

GLUHLTH.COM-########,Limassol,CY,000000000,528

She used apple pay like always to pay for the app download. The bank confirmed apple pay was used.

Subsequently, two six dollar charges appeared (both also via apple pay per the bank) with the same information above, but our credit card company declined them.

This app doesn't appear in the app store settings under her list of apps with active subscriptions. I'm very suspicious since the charges appear from the publisher directly and not apple. The reviews of this app are full of similar comments, but it remains on the app store.

If I go to Wallet on her phone, settings -> preauthorized payments, the vendor doesn't appear on the list (just some newspapers)

My question - do I need to get my credit card reissued? Maybe using apple pay helped in that its tokenized so only the first charge was successful? If a credit card was used directly instead of via apple pay, maybe the merchant would have successfully received those additional charges.

 

[Puonti]

She used apple pay like always to pay for the app download. The bank confirmed apple pay was used.

This is a free app. There is no price to download it. What did your family member actually agree to pay for, and did it happen inside the app or on a website the app opened during the payment procedure?

If the family member paid for something through a website using Apple Pay, then Apple Pay was used simply as a payment processor and it's normal for their credit card to list the app's developer as the recipient.

In such a case that 99 cent charge might be a pre-authorization used to confirm that the payment method is valid, and will be reimbursed. The other charge attempts would then be whatever your family member agreed to pay for (if this business is legit), or something else (if it's not).

Subscriptions started through a website would not appear in Apple's list of subscriptions.

 

[djc6]

did it happen inside the app or on a website the app opened during the payment procedure?

I asked this, but I'm not sure she would know the difference. She might buy one app a year - I myself cannot recall paying for an app ever, so what the interface normally looks like when purchasing an app is foreign to both of us. Only thing I buy is a 2TB iCLoud+ storage plan.

Bank says the 99 cents was not a pre-authorization but an actual purchase.

I wanted to begin the purchase of this app to see what pops up for payment request, but because of family sharing it just re-downloads.

 

[Puonti]

Downloading the app doesn't initiate a payment since it's a free (to download) app, so Family Sharing doesn't matter in this case. After you download the app and launch it, you'll see what she saw.

Considering the negative user feedback and your family member's experience I suspect at least in the US after you launch the app (and tap Continue once or twice) it asks whether you want to subscribe through Apple (higher prices) or directly through them (cheaper).

Selecting the cheaper option likely opens a website where you can use payment options such as Apple Pay to sign up for a 99 cent week-long "trial" subscription that then automatically converts to a more expensive weekly or monthly subscription after the trial ends (unless you cancel it in time, which if I'd have to guess has been made more difficult than it needs to be).

Since these subscriptions are not started through Apple's In-App Purchase system they don't appear in Apple's subscription lists and you can't cancel them from there.

 

[Boyd01]

I wanted to begin the purchase of this app to see what pops up for payment request, but because of family sharing it just re-downloads.

FWIW, this is what shows in the app store for me, but I'm in the US. Downloading the app is free, as has already been pointed out. So, maybe they chose one of the in-app purchases (which appear to be very expensive)?

 

[Gypsy36]

I don’t think this was a fraudulent purchase, the app has in app purchases and, a quick goggle shows that a monthly subscription is 4.99 Euros which I think is roughly $6USD. So, it might be a one month for 99cents if you purchase two or they tried to process the second month a second time after it was declined.

Also, just looked at the reviews. It seems they offer a 99cent deal but, in the small print, include a charge with that of $5. So, it sounds like your wife has just experienced what others have.

 

[djc6]

FWIW, this is what shows in the app store for me, but I'm in the US. Downloading the app is free, as has already been pointed out. So, maybe they chose one of the in-app purchases (which appear to be very expensive)?

I asked and she claims not to have not signed up for subscirption or in-app purchase and tried to request a refund for the 99 cents via apple store once the app opened and showed subscription offers. When she tried reaching out to Apple it said its too soon to report an issue with an app and she needed to wait 24-48 hours.

Additionally, the declined charges were $6.00 USD - which other reviews also state - which isn't even the prices shown for subscriptions ($29.99 a month USD)

I'm just trying to sort out if they can make charges in the future via apple pay and I should just close the card. The bank hasn't been super helpful, the representatives don't seem to know the inner workings of apple pay - i.e., what kind of token was used (merchant token, standing instruction token, etc.. - something persistent).

 

[djc6]

I think I may have found a solution. If you remove the credit card from apple pay, and re-add it a new Device Account Number (DPAN) is generated. Aka the "virtual" credit card number that is used.