A senator from the United States (US) has written to Apple and Google with the request to crack down on fake (scam) crypto apps. Both parties manage the largest mobile app stores.
Protecting consumers
It is said to be a senator named Sen. Sherrod Brown. He has asked both tech giants to explain the procedures for approving crypto-related apps in the Apple and Google play stores. According to the senator, tough action must be taken against the publishers of scam apps to ultimately protect consumers. Brown said the following:
Millions of Americans use mobile apps to invest in unregulated digital assets, including cryptocurrencies. While crypto apps have provided investors with easy and convenient ways to trade cryptocurrency, reports have emerged of fake crypto apps scamming hundreds of investors.
Already made several victims
Recently, the Federal Bureau of Investigation, or the FBI, published a report about the growth of fake Bitcoin smartphone applications designed by cyber criminals to deceive investors.
In one case, according to the FBI, cybercriminals defrauded at least two dozen investors by creating a mobile app that used the name and logo of a real trading platform. A total of 244 crypto victims were identified and the loss was estimated at nearly $43 million.
In response, Brown asked for details about the companies’ review process, steps taken to ensure operators do not circumvent the policy, and information about the companies’ respective reporting procedures for fraudulent applications.
Google and Apple have been asked to provide detailed information about the steps they are taking to deliver customer protection and fraud awareness, along with actions they have taken against these activities since early 2020. They reportedly have until August 10 of this year to respond. This is becoming increasingly difficult within the crypto world in the US.