In a sense it already does: there were instances of Ingress players "moving" from place to place at 200km/h or so during rush hour in London.
IMHO it's better if developers know about fake data so they can factor them in, using plausibility checks. As is, they seem to assume that the data source is real.
Let that app ask for my location, but let me define location it returns when I refuse real location. Same for contacts/messages.