U.S. Senator. Sherrod Brown (D.Ohio), chairman of the Senate Banking Committee is asking Apple and Google to explain how they prevent fraudulent crypto apps from being downloaded on the Apple Store or Google Play Store.
The U.S. lawmaker wrote two letters to Apple CEO Tim Cook on Wednesday, 27 July.
Senator Brown is concerned by scams that continue robbing innocent investors of millions of dollars.
The lawmaker wrote in the letters to the two firms: “Cyber criminals have stolen company logos, names and other identifying information of crypto firms and then created fake mobile apps to trick unsuspecting investors into believing they are conducting business with a legitimate crypto firm. Alarmingly, far too many investors have fallen victim.”
Brown said that it was crucial for app stores to have the appropriate measures in place in order to prevent fraudulent mobile applications activity.
Sen. Brown requested information about the safeguards these companies have in place to protect their app stores from fraudulent activity.
Senator Brown stated that crypto trading platforms have seen a rise in popularity in recent years with millions of investors downloading apps to trade or invest in digital assets. Millions of Americans use mobile applications to invest in unregulated digital assets. cryptocurrencies.”
Brown also requested details from Apple and Google about the app reviews they go through before approving crypto apps for their stores. This includes steps taken to protect against fraudulent apps.
The lawmaker requested that both companies respond to the letters by August 10, 2008.
On Thursday, the Senator’s committee held a hearing examining scams in the crypto industry.
New Crypto App Scams
The senator’s letter comes after an FBI report last week providing details of fraudulent cryptocurrency apps and wallets that purport to be sound investment opportunities.
According to the FBI’s 21-July report, 244 investors have been harmed in the past year. Four-and-a-half million dollars were stolen by fraudulent mobile applications claiming to be legitimate crypto investment portals.
According to FBI reports, cyber fraudsters are trying cash in on rising interest in mobile banking and crypto investing.
According to the agency, scammers have been contacting investors in the United States with fake offers of crypto investment services. They then convince them to download fake apps.
Many of these bogus apps use the logos and names legitimate US businesses. Fraudsters also create fake websites using this information to lure investors.