Retail apps now process their highest transaction volumes during peak periods. A single exploited app during these windows can compromise millions of stored-card checkouts, gift card loads and loyalty redemptions. Cybercriminals are racing to deploy AI-themed malware and cloned apps faster than security teams can respond.
Here’s what that looks like in practice: A user searches for ChatGPT or DALL·E on their mobile, and within seconds, dozens of apps appear — each claiming to offer smart chat, image generation or another AI-driven feature. On the surface, they look legitimate, but behind the familiar look and feel of these clones sits a spectrum of threats, from harmless wrappers and aggressive adware to fully developed spyware.
According to recent research, fake iOS apps have grown to nearly three times the usual volume, and fake Android apps have grown to nearly six times the national average.
The same pattern is showing up across the tech world. A recent Coinbase Base hackathon offered a $200,000 prize and drew more than 500 developers. Several of the winning projects were later accused of being empty apps linked to company employees. The situation shows how easy it’s become to fool people with something that looks polished, even when the app itself does very little.
Before hitting download, users need to understand the full range of fake apps now circulating, how these clones hide, how they trick people and which red flags to watch out for.
Inside the Spectrum of Fake Apps
Appknox researchers recently examined three apps pretending to be ChatGPT, DALL·E and WhatsApp. The apps posing as ChatGPT and DALL·E weren’t tools at all. They behaved like hidden app stores that could quietly install or delete software on a phone. The WhatsApp clone, known as WhatsApp Plus, went even further and acted as full spyware with access to messages, contacts and call logs. These findings illustrate the spectrum of mobile deception and help explain why fake apps are harder to spot.
Some apps sit at the low end and act as simple wrappers that use familiar names, but connect to real services that behave honestly. Others sit in the middle of the spectrum and imitate trusted brands to attract downloads, but don’t actually deliver anything meaningful. At the high-risk end of the spectrum are malicious clones that hide harmful systems behind trusted branding and user-friendly interfaces.
A lot of fake apps blend in so well that users have little reason to suspect that anything is wrong until that app has already been installed. You can no longer rely on familiar branding and clean designs as reliable signals of safety.
ChatGPT Wrapper Illustrates Imitation Without Deception
At the low end of the spectrum, the Appknox researchers looked at the unofficial ChatGPT Wrapper app. The app behaves exactly as described by sending user text to the OpenAI API and returning results without extra processing. Appknox researchers found no hidden modules or obfuscated code, and no background activity that suggested anything harmful. It asked only for basic permissions and avoided access to contacts, SMS or account information.
Its behavior matches its description, but this level of transparency is rare among AI-themed apps. There are a lot of apps that copy the look of AI tools while hiding unrelated systems inside. The ChatGPT Wrapper does the opposite, offering a simple service and making its function clear. It shows that unofficial apps aren’t automatically dangerous; some exist to fill gaps in official offerings without misleading users.
The wrapper also demonstrates why users must evaluate app behavior rather than brand resemblance. A familiar name doesn’t guarantee safety, and an unofficial name doesn’t guarantee risk. The real issue is whether the app performs the function it claims to without hiding additional processes.
DALL·E Lookalike Pretends to Be AI
In the middle of the spectrum, the researchers found the DALL·E 3 AI Image Generator app on Aptoide, a third-party Android app store that allows anyone to upload apps with little review. That alone is a warning sign.
This one looks convincing and uses branding that resembles an official OpenAI service. The color scheme and icons match expectations. When the app opens, a loading animation suggests an AI model is creating an image. Everything is designed to feel familiar and trustworthy.
Once Appknox researchers looked inside the app, they found that the app has no AI system at all. There is nothing inside that can generate images or run a model. Instead, the app connects only to advertising platforms like Adjust, AppsFlyer, Unity Ads and Big Ads. These connections activate immediately when the app is launched. No user content is processed, and no image is created. All activity is tied to ads.
Its internal identifiers also offer important clues. They match template-based apps that can be quickly repackaged and released under different names. This suggests the app was assembled by reusing a generic kit, then dressed up to look like an AI tool so it would attract downloads.
WhatsApp Plus Hiding a Full Spyware System
At the far end of the spectrum sits WhatsApp Plus. This app presents itself as an enhanced version of WhatsApp, but inside, it contains a full surveillance system. It uses a fraudulent certificate and relies on the Ljiami packer, which hides encrypted code inside secondary folders that activate after installation. The hidden modules give the app persistent access to the device.
Once it's installed, WhatsApp Plus asks for extensive permissions that far exceed what a messaging app needs, like the ability to read and write contacts, access SMS messages, retrieve device accounts, collect call logs and send messages on behalf of the user. The app can then intercept verification codes, scrape address books, impersonate the user and interfere with identity-based authentication.
Security platforms classify this app as spyware and Trojan malware. At first, it looks polished and works like any other app, but once installed, it behaves like an active surveillance tool. In addition to data theft, the app can take over messaging accounts and disrupt banking or financial flows that rely on SMS for verification.
How to Protect Against Brand Abuse and Malicious Clones
As the number of unofficial apps continues to grow, brand trust itself has become a vector. Bad actors are focusing more on duplicating legitimate sites and making them appear credible than on creating new malware. This makes it easier for fake apps to hide in plain sight. Here are a few practical steps that can help reduce the risk:
- Download from trusted stores only. Stick to Google Play or the Apple App Store. Third-party stores allow anyone to upload apps with minimal review, which makes it easier for clones and malware to sneak in.
- Check the developer name. Make sure the publisher listed is the real company. If an app claims to be from OpenAI or Meta but lists an unfamiliar developer, that’s a red flag.
- Look closely at permissions. Be cautious if an app asks for access it doesn’t need, such as contacts, call logs or the microphone. Many fake apps count on users tapping “allow” without thinking.
- Notice how an app behaves. Beware of an app that keeps running after it closes, shows unexpected ads or tries to install other apps.
- Watch for copycat branding. Cloned apps often reuse logos, color schemes and names that are close but not exact. Other warning signs include misspellings, extra words or “plus” and “pro” versions.
- Report suspicious apps. If something feels off, report the app through the store. Quick reporting helps protect other users.
- Use a mobile security tool. Security apps that check behavior, permissions and network activity can catch threats that appear harmless.
The examples uncovered by Appknox researchers mark a turning point. Fake apps no longer stand out, and familiar branding won’t guarantee safety. Mobile security now depends on understanding how modern apps behave and paying attention to the small signals that something seems off. With clear, upfront behavior checks, users have a much better chance of spotting deception and stopping it before it causes harm.
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