With the rise of crypto in recent years, more and more scammers have turned to this sector (either demanding ransoms in cryptocurrency or targeting crypto holders). The fraudsters behind so-called crypto scams have stolen billions of dollars from investors in recent years. But now, politicians and law enforcement are turning their attention to Apple and Google and how they review scam crypto apps in app stores .
In letters to Apple CEO Tim Cookand Google CEO Sundar Pichaion Thursday, Sen. Sherrod Brown (D-OH) asked the companies to explain their processes for vetting and approving crypto trading and wallet apps for download in their app stores. Brown’s inquiry follows a recently released FBI report warning that in less than a year, 244 investors were defrauded and lost $42.7 million to fraudulent crypto apps claiming to be reputable investment platforms.
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“Crypto apps for mobile devices are available to the public through app stores, including Apple’s App Store,” the senator wrote to Cook. “While crypto apps have offered investors easy and convenient ways to trade cryptocurrencies, there have been reports of fake apps that have defrauded hundreds of investors.”
Earlier this month, several federal law enforcement agencies, including the FBI and the Department of Justice, began taking action against fraudsters accused of stealing millions of dollars from consumers.
In the letters, Brown asked Google and Apple CEOs to detail their processes for vetting and monitoring crypto apps to prevent the apps from “turning into phishing.” He also seeks any information Apple and Google have provided to consumers about fake investment apps.
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“While companies offering crypto investments and other related services should take the necessary steps to prevent fraudulent activity, including warning investors about the rise in scams, it is also imperative that app stores have appropriate safeguards in place to prevent fraudulent mobile app activity,” the senator wrote.
Brown specifically wants answers to the following questions:
- Describe the review process your company follows before approving crypto apps to run on your app store. In your response, please provide the following information: factors or criteria your company uses to determine whether to grant approval to an app, including the steps your company takes to confirm that the app seeking approval is a trusted and secure app.
- Describe the procedures your app store follows to prevent crypto apps running in the store from circumventing store policies by turning them into phishing apps . In your response, please describe in detail how frequently your app store monitors apps to protect against fraudulent activity, as well as the steps required to remove apps that are determined to be fraudulent.
- Describe all systems and processes your company has in place for users to report fraudulent apps.
- Describe any actions your app store has taken to alert people to actual or potential fraudulent activity related to cryptocurrency investment apps.
- Since January 2020, has your app store coordinated or shared actions or activities with other stores related to the suspension or removal of fraudulent cryptocurrency apps? If so, please explain.
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Apple and Google have until August 10 to respond to the senator's requests.
Source: www.theverge.com
