Apple and Google have been targeted for enabling crypto fraud. U.S. Sen. Sherrod Brown (D-Ohio), the chairman of the Senate Banking Committee, is demanding answers from Apple Inc. (AAPL) and Google parent Alphabet Inc. (GOOGL). The Senator wrote letters to Google and Apple’s CEOs asking them to provide information on how they prevent fraudulent apps from advertising crypto scams. According to statisticians, 95 percent of all frauds are carried out on the internet and through mobile apps. These methods have been made available via the Google Play Store and Apple App Store.
In recent years, the popularity of crypto trading platforms and exchanges has exploded, as millions of people have downloaded mobile applications in order to trade and invest in digital assets. Millions of Americans utilize mobile apps to acquire unsupervised digital assets like cryptocurrencies. As per the letters published, Brown asked Apple CEO Tim Cook and Alphabet CEO Sundar Pichai about the steps they took to approve crypto apps on Apple and Android devices.
The senator sought information on how the firms verified that applications were “trusted and secure.” He requested Apple and Google to explain how they prevent fraudulent applications from being accepted by users. Recent developments have investors speculating about whether Google and Apple can assist prevent crypto frauds. The new perspective offered by the senator sheds light on issues that lawmakers had not yet considered. All eyes are on Google and Apple, whose response might significantly impact how crypto fraud is combated.
According to Brown, app stores must have adequate safeguards in place to prevent fraudulent mobile application usage. Brown’s letters to Apple and Google followed the FBI’s release of a public warning about fraudulent cryptocurrency applications on July 18. According to the FBI, hundreds of thousands of dollars have been stolen in crypto frauds.
Crypto scammers are also using dating and messaging apps to persuade victims to send money or invest in fraudulent crypto platforms, adding that fake news on social media was a driving force in the spread of such scams. Brown has been a major advocate for investors and consumers in the crypto space, most recently chairing a hearing on protecting Americans from crypto and securities scams. In March, Brown hosted a hearing highlighting the importance of digital assets in cybercrime and illicit finance. He also held a hearing in February to assess the dangers that stablecoins pose to our economy.
Cybercriminals 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 to such scams with losses exceeding $42 million […] While firms that offer crypto investment and other related services should take the necessary steps to prevent fraudulent activity, including warning investors about the uptick in scams, it is likewise imperative that app stores have the proper safeguards in place to prevent against fraudulent mobile application activity