Using everything from fake Elon Musk Twitter accounts to dubious Discord chats, cryptocurrency and non-fungible token (NFT) fraudsters have stolen billions of dollars from investors over the past several years. The evaluation of fake cryptocurrency apps by Apple and Google, which operate substantial app stores, is a topic of increasing interest to politicians and law enforcement.
Sen. Sherrod Brown (D-OH) asked Apple CEO Tim Cook and Google CEO Sundar Pichai in letters sent on Thursday for an explanation of how their companies choose and approve cryptocurrency trading and wallet applications for inclusion in their respective app stores. Brown began his research after the FBI issued a report warning that 244 individuals had been conned out of $42.7 million by fraudulent bitcoin programs posing as trustworthy investment platforms in less than a year.
The senator wrote to Cook on Thursday that anybody may obtain mobile apps connected to cryptocurrencies from app stores like Apple’s App Store. While cryptocurrency applications have made it easy and convenient for investors to trade cryptocurrencies, there have also been reports of phoney crypto apps that have conned hundreds of investors.
Other federal law enforcement organizations, including the FBI and Justice Department, began pursuing action against con artists earlier this month on the grounds that they may have stolen millions, if not billions, of cash from clients. Despite the drop in the value of Bitcoin and other cryptocurrencies, scams are getting more widespread.
Brown encouraged the CEOs in the letters to be precise about their evaluation and oversight processes for crypto apps in order to prevent them from “transforming into phishing” scams. He is also looking for any notifications that Apple and Google may have issued consumers regarding fraudulent financial apps.
The senator noted that it is essential that app shops have the proper security measures in place to prevent fraudulent mobile application activity. While businesses that provide cryptocurrency investing and other similar services should take the required precautions to stop fraud, including alerting investors to the rise in scams, he added.
Brown’s Senate Banking Committee planned a meeting with bitcoin experts to discuss ways that Congress may reduce scams in the cryptocurrency and securities markets hours before the issues were raised.
Apple and Google have until August 10 to respond, according to the senator.
