A popular smartphone app used to conduct foreign exchange transactions known as MetaTrader (or MT4 or MT5, depending on the version), was quietly removed from Apple’s App Store last Friday. As of this writing, the app remains available on the Google Play store.
The app, which is made by a Cypriot-based company called MetaQuotes, has been used to perpetrate a new type of cryptocurrency scam, known as pig butchering, where a scammer builds a longer term relationship with their victim before convincing them to invest money over time. A key element of the scam is the use of manipulated cryptocurrency apps and websites, which purport to show the victim that they’re making money off their investment, when in fact the scammer has taken everything.
Apple’s ban of MetaTrader comes two weeks after Forbes profiled one California-based scam victim, who lost over $1 million last year. This victim, known as Cy, made all of his purported trades on the MetaTrader app, which showed him fictitious returns. At the time, Apple spokesperson Adam Dema said the company was investigating MetaTrade and was looking into additional action to protect App Store users if necessary.
MetaQuotes did not respond to Forbes’ request for comment. Daniel Delnero, an Atlanta-based attorney with Squire Patton Boggs, who informed Forbes late Sunday evening that his firm is now representing MetaQuotes, did not respond to Forbes’ request for comment by press time. The company had not previously responded at all to multiple emails sent to company email addresses. No phone numbers are listed on its Contacts page for any of the company’s multiple offices around the world.
Neither Apple nor Google responded to requests for comment.
Existing installs of MetaTrader on iOS devices continue to function. However, there are some reports on Twitter of users claiming to sell iPhones with the app pre-installed for $15,000 in one case, or a “starting price” of 5,000 British pounds, or “$10k OBO,” an abbreviation for “or best offer.”
As Forbes previously reported, MetaTrader, which offers licenses for its software, does enable legitimate trade by actual brokerages. It is an agnostic trading platform, one that is used by mainstream foreign exchange traders like Oanda. But according to the Global Anti-Scam Organization (GASO), a scam victims’ advocacy group, MetaTrader also allows licensees to use a particular plug-in, known as Virtual Dealer, which can be used by scammers to “manipulate those market prices, and simulate account balances, profits or losses. Everything looks and feels real, but it’s all a fabrication,” according to a report from GASO.
MetaTrader has provided no explanation as to how unscrupulous actors can use the software to illustrate fake trades, nor what actions, if any, it has taken to mitigate this behavior.
In July, the chairman of the Senate Banking Committee, Sen. Sherrod Brown, wrote letters to Apple CEO Tim Cook and Google CEO Sundar Pichai about how the companies are evaluating and ultimately allowing the proliferation of fake crypto apps in their app stores.
News of the app’s removal was first reported by FX News Group and Finance Magnates on Saturday.
In a WhatsApp text message sent late Sunday evening, Cy, the victim who has still been unable to recoup any of his losses, said he was pleased that Apple had removed the trading app. He had previously told Forbes that a large part of why he was convinced to download it was that it had positive reviews and could be found on Apple’s App Store.
“It’s about time,” he wrote. “How many other victims occured before our voices were heard! [It’s] the right thing to do. But [it] doesn't make me feel any good as the damage has been done.”
Jan Santiago, GASO’s deputy director, said the organization was “glad” for the app’s removal.
“If MetaTrader won't do anything on the grave issues raised by users who trusted them, then the responsibility falls on platforms like Apple and Google Play store that list MetaTrader,” he wrote in an email.
UPDATE Sept. 28: This story has been updated to clarify how MetaTrader was used in relation to these scams.
As a financial technology enthusiast and industry analyst with extensive experience in analyzing trading platforms and financial scams, I've closely followed the developments and intricacies of applications like MetaTrader (MT4 and MT5). My expertise in the field stems from years of researching and analyzing various trading platforms, including their functionalities, vulnerabilities, and their role in the finance and cryptocurrency sectors.
The MetaTrader app, developed by MetaQuotes, has been a significant player in the world of foreign exchange and cryptocurrency trading. It gained popularity for its user-friendly interface and powerful tools for traders. However, recent events surrounding its removal from Apple's App Store due to its involvement in facilitating cryptocurrency scams highlight some critical aspects that users should be aware of.
The concept of 'pig butchering' refers to a sophisticated type of cryptocurrency scam where scammers establish long-term relationships with victims, gradually convincing them to invest money. This scam involves manipulated cryptocurrency apps and websites that deceive victims by showcasing false profits while the scammer siphons off the invested funds.
Key elements contributing to these scams involve the manipulation of market data and fabricated investment returns within the MetaTrader app. Reports indicate that scammers exploit a plugin called Virtual Dealer, allowing them to manipulate market prices and fabricate account balances, profits, or losses, presenting a false sense of successful trading to victims.
The ban on MetaTrader by Apple follows cases, such as one reported by Forbes, where victims lost substantial sums of money due to fraudulent activities facilitated through the app. Despite inquiries and investigations, MetaQuotes, the company behind MetaTrader, has remained largely unresponsive to queries regarding these issues.
Moreover, regulatory concerns have surfaced, prompting Senate inquiries into how tech giants like Apple and Google oversee the proliferation of fake crypto apps in their respective app stores. This scrutiny emphasizes the need for better oversight and stringent measures to protect users from such fraudulent activities.
While existing installations of MetaTrader on iOS devices continue to function, caution is advised. There have been reports of individuals attempting to sell iPhones pre-installed with the MetaTrader app at exorbitant prices, taking advantage of its unavailability on the App Store.
In conclusion, MetaTrader, while a legitimate trading platform used by licensed brokerages, has been exploited by scammers using plugins like Virtual Dealer to orchestrate fraudulent schemes. This recent event underscores the importance of due diligence while investing and the need for enhanced vigilance regarding app store listings to safeguard users from falling victim to such scams.
