Apple and Google come underneath scrutiny for scammy crypto apps

From Elon Musk Twitter impersonators to doubtful Discord chats, cryptocurrency and non-fungible token (NFT) scammers have stolen billions of {dollars} from buyers over the previous couple of years. But now, politicians and legislation enforcement are turning their consideration to Apple and Google — corporations that function enormous app shops — and the way they evaluation fraudulent crypto apps.

In letters to Apple CEO Tim Cook and Google CEO Sundar Pichai on Thursday, Sen. Sherrod Brown (D-OH) requested that the businesses clarify their processes in reviewing and approving crypto buying and selling and pockets apps for obtain on their app shops. Brown’s inquiry follows a recently released FBI report warning that 244 buyers have been scammed out of $42.7 million from fraudulent cryptocurrency apps claiming to be credible funding platforms in underneath a yr.

“Crypto mobile apps are available to the public through app stores, including Apple’s App Store,” the senator wrote to Cook on Thursday. “While cryptocurrency apps have offered investors easy and convenient ways to trade cryptocurrency, reports have emerged of fake crypto apps that have scammed hundreds of investors.”

Apple and Google didn’t instantly reply to requests for remark.

Earlier this month, a number of federal legislation enforcement companies, together with the FBI and Justice Department, started taking motion towards scammers accused of stealing thousands and thousands, and generally billions, of {dollars} from customers. Even as Bitcoin and different cryptocurrencies have fallen in value, the prevalence of scams has continued to develop.

In the letters, Brown requested the CEOs to element their crypto app evaluation and monitoring processes to stop apps from “transforming into phishing” scams. He’s additionally in search of any data Apple and Google have supplied customers about pretend funding apps.

“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,” the senator wrote.

The inquiries got here hours earlier than the Senate Banking Committee, chaired by Brown, was set to carry a listening to with cryptocurrency specialists on methods Congress may mitigate scams within the crypto and securities markets.

Apple and Google have till August tenth to answer the senator’s requests.