A US lawmaker is calling for Apple and Google to provide information about fake crypto apps

A US lawmaker is calling for Apple and Google to provide information about fake crypto apps – Mail Bonus

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Senator Sherrod Brown, chairman of the Senate Banking Committee, has written a letter to the CEOs of Google’s parent company Alphabet and Apple, calling on the tech companies to provide information on how they prevent certain apps from promoting crypto fraud.

According to the letters released Thursday, Brown asked Apple CEO Tim Cook and Alphabet CEO Sundar Pichai about the steps the tech giants were taking in accepting crypto apps on Apple and Android devices. The senator requested information related to how the companies assess whether apps are “trusted and secure,” prevent potential phishing apps with fraudulent apps, and notify users of such apps.

“Cybercriminals have stolen logos, names and other identifying information about crypto companies and then created fake mobile apps to trick unsuspecting investors into believing they are dealing with a legitimate crypto company,” Brown said. “While companies offering crypto investments and other related services should take the necessary steps to prevent fraudulent activity, including alerting investors to an increase in scams, it is equally important that app stores have appropriate safeguards to prevent fraudulent activity of mobile applications. .”

Brown’s letters came after the Federal Bureau of Investigation issued a public warning about fraudulent cryptocurrency programs on July 18. The bureau reported that scammers stole more than $42 million from 244 people between October 2021 and May 2022, including cases where an app used the name of a former legitimate crypto exchange.

Speaking at Thursday’s Senate Banking Committee hearing on “Understanding Fraud and Risk in Crypto and Securities Markets,” Brown appeared to place some of the burden of addressing platform and app crypto fraud on lawmakers and regulators rather than businesses:

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“We hear players in the industry calling for traffic rules when a major fraud is discovered and after a major player has deliberately broken the law. The rules are there, the road sign is clear and [the Senate Banking Committee] need to ensure our regulators enforce the law and protect the workers and families who keep this economy going […] The industry should not be allowed to write the rules they want to play by.”

Gerri Walsh, president of the Financial Industry Regulatory Authority Investor Education Foundation, said in written testimony before the hearing that some of the $57 million in fines levied by the financial regulator on trading app Robinhood in June 2021 would be used to educate crypto investors, including those using online accounts or mobile applications. Walsh also pointed to scammers using dating and messaging apps to convince victims to send funds or invest in fraudulent crypto platforms, saying misinformation on social media is a big factor in the spread of such scams in response to a question on Instagram posts.

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The Federal Trade Commission reported in June that approx. 46,000 people in the US would have lost up to $1 billion in crypto to scams by 2021. The commission said at the time that roughly half of all crypto-related scams come from social media through ads, posts and messages.

Cointelegraph reached out to Apple and Google, but did not receive a response at the time of publication.