How to Avoid Scams and Fraudulent Mobile App Development Companies

How to Avoid Scams and Fraudulent Mobile App Development Companies

In this digital era, having a mobile app for your business is very essential to sustain your digital presence and generate new revenue streams. However, finding a trustworthy mobile app development company in 2024 can be troublesome. In this blog, I will share some simple tips to keep you protected from scams and fraud.

Conduct Research and Due Diligence

The process of choosing a trustworthy app development company starts with doing thorough research. You can start by digging into the background of the company, reading reviews regarding the company, and checking testimonials about their services. While looking for reviews, you will find both positive and negative ones. Besides, you will also get to know their history briefly presented on their website. You need to check and verify them properly with reference to at least three to four more sources.

Properly Verify Credentials

You have to make sure that you are hiring a legitimate mobile app development company for your business. To remain protected from scams and fraud, you have to thoroughly check the registration, certification, and industry affiliation documents of the company. If you find them delaying this verification process or giving excuses to skip this, then avoid hiring them.

Verify Portfolio and Past Projects

Assessing the quality of services given by the mobile app development company is very crucial. You have to ask the company to present their portfolio of past works in order to understand the quality and efficiency of the development team presented by them. Besides, whether the company that is promising you to fulfill your app development requirements can do the job properly or not is to be understood by judging their past work experiences.

Ask For Client References

One of the best and most effective ways to verify a mobile app development company’s authenticity is to look for client references. You should ask them to provide you with valid client references and their contact details. Thereafter, you can ask those clients for their honest reviews and verify their claims with respect to their existing App.

Ensure Clear Communication

Communication is the key to building trust between you and your hired mobile app development company. Therefore, before giving the project to them ensure that they will be obliged to provide regular and transparent updates regarding the project’s progress. In this regard, you can prepare a schedule and procedure for consistent communication and get that validated by both parties as an agreement of fair & transparent communication.

Develop milestone Based Payment Structures

A mobile app development company that asks for a large upfront payment can be a signal of potential scams or fraud. You have to propose a milestone-based payment structure for the app development process. In this regard, you can consider Escrow Services for secured payments based on project milestone completion.

Prepare Legal Contract

The best way to stay protected from fraud by mobile app development companies is to involve legal obligations in the relationship between you and your hired mobile app development company. You have to prepare a legal contract with the hired company and clearly define the obligations and conditions of the deal in the legal contract.

Identify Red Flags

There are certain red flags that are common in the case of mobile app development company scams and fraud. First of all, look for unrealistic promises that sound hard to believe and offered prices that are too low to be true. Besides, look for their words and actions, if you find any reluctance in their behavior then get alarmed.

Stay Updated about The Industry Standards

In order to stay protected from scams and fraud while searching for a mobile app development company, it is essential to stay informed about existing industry standards. You have to know about the best practices and trends in the industry to understand if the potential app development company can provide up-to-the-mark services.

Look For Online Presence and Reviews

The online presence of a company provides a sense of security up to a certain extent. Through judging the online presence of a mobile app development company a lot of things such as their projects, certifications, and other crucial details can be identified. If the company is fraudulent, your gut feeling will let you know after you go through its online presence and its reviews from websites like Glassdoor or Clutch.

Establish Security and Data Privacy

The development of a mobile app requires certain security measures to protect the users. In the case of a fraudulent company, you will notice that the company may not be using the Data Protection Act or focusing properly on the data privacy of the users. Therefore, to remain protected from such scammers you need to ensure that the company has focused on security and data privacy adequately in their previous projects. Besides, you need to cross-check properly if the mobile app development company knows all the legal regulations or not.


In a nutshell, protecting yourself from scams and fraudulent mobile app development companies is necessary. Through thorough research, verification & validation of credentials, and transparent as well as regular communication, you can confidently navigate safely within the app development landscape. You should always stay alert regarding the red flags I discussed and if your gut feeling does not coincide then just move away from the company. The mobile app that you wish to be prepared for is the key to your digital business success and future growth. Therefore, risking its development in the hands of untrustworthy people can harm your progress in the long run. Remember to emphasize more on verifying the portfolio and creating legal contracts while hiring a potential company for developing your business’ mobile app.


1. What are common red flags that indicate a mobile app development scam?

Fraudulent mobile app development companies try to avoid transparency. Keeping this in mind you can consider the following as a few red flags to look for before hiring a mobile app development company. Poor communication, lack of proper contract, asking for full payment upfront even before starting the project, unprofessional activities, sending across obscured links, unrealistic promises, frequent delays, lack of accountability, under delivering can be considered as some of the red flags to stay alert. 

2. How can I identify potential scams in the mobile app development industry?

When companies do not provide detailed project plans and realistic deadlines, you can consider them as potential scams in the mobile app development industry. Unrealistically low prices according to industry standards, uneven deliverables and promises, not giving updates of development progress of your project can be warning signs for identifying potential scams. 

3. Should I trust companies offering significantly lower prices than their competitors?

While significantly lower prices may refer to fresher or small companies starting their career offering low prices to attract clients, this strategy is also one of the favorites of the scammers. Be aware of any hidden charges, poor quality of work, fake experience, or even scams and compare with others in the industry to make better estimations.

4. Are detailed contracts necessary for avoiding scams in mobile app development?

A detailed contract can include vital information like project outline, scope of work, deliverables, pricing strategy, project deadlines, responsibilities, rules of extra charges and even work procedure. This can save time and boost trust by avoiding misunderstandings from both sides. Hence choose those companies that provide detailed contracts.

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