$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
Malicious apps posing as free VPN services actually log user browsing data, inject ads, or route traffic through servers controlled by the scammer.
“fake app”
↑ 58%Key indicators
Estimated impact
$960
median reported loss
Scam breakdown
Scammers publish free VPN apps that attract users looking for privacy protection
The app routes traffic through scammer-controlled servers, allowing them to intercept unencrypted data, inject ads, and log browsing activity
Harvested browsing data and personal information is sold to data brokers or used for targeted phishing attacks
What to do first
Use only well-established VPN providers with transparent privacy policies and third-party security audits
Related terms
Real-world example
Based on reported patterns. Names and details are illustrative.
The setup
Maria, 35, a smartphone users, encountered what appeared to be a legitimate fake app scams situation while using Google Play. Scammers publish free VPN apps that attract users looking for privacy protection
Step 2
What happened next was calculated: The app routes traffic through scammer-controlled servers, allowing them to intercept unencrypted data, inject ads, and log browsing activity
Step 3
The pressure escalated quickly: Harvested browsing data and personal information is sold to data brokers or used for targeted phishing attacks
The outcome
Maria realized something was wrong when vpn app is completely free with no clear business model or premium tier. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Use only well-established VPN providers with transparent privacy policies and third-party security audits Maria's experience shows why vpn app is completely free with no clear business model or premium tier and privacy policy is vague, nonexistent, or grants broad rights to log and sell user data are the clearest early warning signs.
How to identify it
What to do now
What to save before reporting
How big is this problem
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
$12.5B
FTC says consumers reported losing $12.5 billion to fraud in 2024.
Imposters
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
Recovery and follow-up
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
A CSIRO study found that 38 percent of free Android VPN apps contained some form of malware, and 18 percent did not encrypt user traffic at all
OpenScam research
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Who is most at risk
Primary targets
Smartphone users, Privacy-conscious users, Android users
Geographic concentration
United States, India, Russia
Primary channel
Google Play — Fake app scams
Why this group is vulnerable
Smartphone users are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The growing number of reports suggests that awareness among this demographic remains low.
Sources and methodology
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
Source notes
Frequently asked questions
Scammers publish free VPN apps that attract users looking for privacy protection The app routes traffic through scammer-controlled servers, allowing them to intercept unencrypted data, inject ads, and log browsing activity Harvested browsing data and personal information is sold to data brokers or used for targeted phishing attacks
VPN app is completely free with no clear business model or premium tier Privacy policy is vague, nonexistent, or grants broad rights to log and sell user data App requests permissions unrelated to VPN functionality such as camera, contacts, or SMS access
Use only well-established VPN providers with transparent privacy policies and third-party security audits Be cautious of any VPN that is entirely free, as running VPN servers has real costs that must be covered somehow Check independent reviews on sites like PCMag or Wirecutter before installing any VPN app
This scam primarily targets Smartphone users, Privacy-conscious users, Android users. It is most commonly reported in United States, India, Russia and typically appears on Google Play.
fake VPN app scam is currently on the rise with growing reports. It has been reported across US, IN, RU. Last updated 2026-04-04.
Related scams
Scam text messages claim you have won a prize or gift card and include a link to a phishing website designed to steal personal information.
Never click links in unsolicited text messages claiming you have won a prize
Smartphone users
U.S.
Scammers send phishing emails disguised as warranty registration confirmations for recently purchased electronics, directing victims to fake sites that steal personal and financial data.
Register warranties only through the manufacturer official website by navigating directly rather than clicking email links
Consumers
U.S.
Scammers impersonate well-known manufacturers like Apple, Samsung, or LG by phone or email, offering fake extended warranties that collect payments and personal data.
Hang up and call the manufacturer directly using the phone number listed on their official website
Consumers
U.S.
Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.