Google and Apple Urged to Provide Information on Fake Crypto Apps
- App stores like Google and Apple can help their users prevent crypto frauds by detecting fake apps on their stores.
A US lawmaker has reportedly demanded Google and Apple, two of the world’s biggest tech firms, provide information on fake crypto applications. The Chair of the Senate Banking Committee, Senator Sherrod Brown, reportedly wrote to the CEOs of Apple and Alphabet, the company behind Google, requesting details on how the tech companies prevent some apps from supporting cryptocurrency scams.
The now publicized letters detailed Brown’s inquiry into how Alphabet CEO, Sundar Pichai, and Apple CEO Tim Cook were working on approving cryptocurrency apps for use on Apple and Android devices. The lawmaker questioned the tech giants on how they ensured apps were reliable and safe for use and prevented fraud via fake apps. Senator Brown was also interested in how Apple and Google alerted their users about the discovery of fake apps.
Online scammers go the extra mile to deceive unsuspecting investors into thinking they are dealing with a genuine crypto organization. Most of these cybercriminals use the names and logos of real companies to lure their victims. Some fraudsters have gone on to build fake mobile apps.
Crypto service providers have the bulk of the responsibility in ensuring the safety of their users. However, Senator Brown argued that app stores have a role to play in preventing crypto-related scams. According to the lawmaker, platforms such as Google and Apple are expected to have the tools that inform users of possible fake apps.
Brown’s comments comes days after the Federal Bureau of Investigation warned the public about the rise of fake cryptocurrency apps. According to reports, crypto scammers have stolen more than $42 million from 244 victims in less than a year. Some of these hacks were carried out using the names and logos of popular crypto exchanges.
Senator Brown’s speech at a hearing with the Senate Banking Committee on scams and risks in the crypto and securities markets appeared to shift the responsibilities of addressing the growing cases of fraud to regulators instead of the crypto service providers. He said,
We hear industry players call for rules of the road when a big fraud is uncovered, and after a big actor has knowingly violated the law. The rules are there, the roadmap is clear, and [the Senate Banking Committee] needs to make sure our regulators enforce the law and protect the workers and families that keep this economy rolling […] Industry shouldn’t be allowed to write the rules that they want to play by
Last month, the Federal Trade Commission published a report estimating that 46,000 US-based crypto users lost up to $1 billion to crypto scammers in 2021. The commission also stated that social media platforms were the source of about half of all cryptocurrency-related scams.
Responding to the increase in crypto fraud cases, the FBI has advised crypto service providers to constantly be on the lookout for scammers impersonating their platforms. Service providers are also advised to promptly inform their users of new changes and other developments.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
