US Senator Sherrod Brown has sent letters to the CEOs of Apple and Google calling them out on fake crypto apps. Through the letters, he has asked forms to answer on their safeguarding against cryptocurrency app scams.
As per official blog, Brown asked for details of the firm’s app approval and reporting processes. Brown also demanded answers on how the firm alerts users for fraudulent activities, coordinates with rival firms and monitors for apps that are involved in phishing scams.
Senator has asked both the firms to respond to the letters by August 10th.
Brown stated that Cyber criminals have stolen company logos, names, and other identifying data of crypto firms to create fake mobile apps to lure investors by portraying themselves as a legitimate crypto firm. As a result, many unsuspecting investors have fallen victim to frauds amounting a loss exceeding $42 million.
Brown wrote, “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.”
On Thursday, Brown also chaired a hearing on safeguarding American citizens against the frauds and threats of crypto and securities markets.