US Senator and Chairman of the Senate Banking Committee, Sherrod Brown, has written letters to Apple and Google CEO’s providing guidance on reviewing potential fraudulent crypto apps.
Tim Cook (Apple CEO) and Sundar Pichai (Google CEO) received letters from the Senator last Thursday in a bid to help mitigate the growing rise in crypto scams following a recent FBI report outlined $42.7m was taken by fraudsters last year.
The 244 investors scammed during the FBI’s findings were due to fraud or scams arising on crypto-related apps, areas where Sen. Brown believes Apple and Google may be positioned to provide some key knowledge on preventing such crypto fraud methods.
Sen. Brown wrote in his letter to the tech giants: “Crypto mobile apps are available to the public through app stores, including Apple’s App Store. While cryptocurrency apps have offered investors easy and covenant ways to trade cryptocurrency, reports have emerged of fake crypto apps that have scammed hundreds of investors.”
Brown inquired Apple and Google to outline some of their crypto app review systems and their monitoring processes of potential scams, whilst also seeking information on fake investment apps.
He continued in his letter: “While firms that offer crypto investment and other related services should take the necessary steps to prevent fraudulent activity, including warning investors about the upotick in scams, it is likewise imperative that app stores have the proper safeguards in place to prevent against fraudulent mobile app activity.”
According to TechRadar, both Apple and Google have yet to respond back to the Senate Banking Committee.
Sen. Brown was due to head a meeting with cryptocurrency experts on how Congress can successfully prevent scams and fraud in the crypto and securities market. This also comes as Congress delayed the impending crypto bill until next year.
Apple and Google have been given until 10 August to respond to Sen. Brown’s requests.