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Apple Bans Developer From App Store for Alleged Fraud

Apple Inc. blocked a developer from its online applications store, alleging his items were linked to fraudulent purchasing patterns.

Developer Thuat Nguyen and his applications were removed from the App Store for violating the company’s program license agreement, Apple said today in a statement. Confidential customer data isn’t shared with developers, the company said, recommending that users whose accounts may have been compromised change their password and contact their financial institutions.

Technology blogs including Engadget.com reported that Nguyen had controlled 42 of the top 50 titles in the App Store’s book category. Some users reported having hundreds of dollars charged to their accounts, according to Engadget.

Apple has 150 million registered users for its iTunes, iBook and App Store marketplaces for purchasing music, e-books, movies and television shows. More than 225,000 applications are in the App store, with more than 5 billion downloaded, according to Apple.

Apple, based in Cupertino, California, rose $1.69 to $248.63 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares have gained 18 percent this year.

To contact the reporter on this story: Adam Satariano in San Francisco at asatariano1@bloomberg.net.

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