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The phrase "a phony system" is correct and usable in written English.
It can be used to describe a system that is not genuine or is deceptive in nature.
Example: "Many people believe that the new program is just a phony system designed to mislead users."
Alternatives: "a fake system" or "a fraudulent system".
Exact(3)
TRUMP: Look, it's a phony system.
It's a phony system.
There's simply too much riding on this to institute a phony system that fails to reverse the destructive course humanity has set.
Similar(57)
The bait was varied — including bogus user log-ins and passwords and phony system configuration files.
Yet the real criminal that needs to stand trial is this: our phony system of systematic non-disclosure about what financial firms are really worth.
Snyder, a guest lecturer at Cornell University, also monitors new products to weed out the "crap and phony systems" from the information inundating players.
It occurred to him then that an unscrupulous person might game the system with a phony story, which years later sparked the idea for his debut novel, A Replacement Life (Harper), published in June.
Oh, and when we finally get the special counsel's report and Congress considers remedies (impeachment, indictment, demands to resign), an outrageous ploy to cook up a phony excuse to defy our system of checks and balances will be added to the mix.
Would the federal government still be, well, rigging the system to create a phony "market" to satisfy a specious "demand" for mandatory and subsidized ethanol?
What a phony.
Was Paterno a phony?
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com