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A US lawmaker has sent a letter to Apple and Google asking for clarification on how they use fraudulent cryptocurrency apps on the App Store and Google Play Store.
sen. Sherrod Brown – chairman of the Senate Banking, Housing and Urban Affairs Committee – wrote two letters to Apple’s CEO Tim cooks and Google CEO Sundar Pichai, respectively, on July 27.
In the letterasks Senator Brown for details on the “measures your company is taking to prevent fraudulent activity in your app store.”
“In recent years, crypto trading platforms and exchanges have become extremely popular with millions of investors downloading mobile apps to trade and invest in digital assets,” wrote Senator Brown. “Millions of Americans use mobile apps to invest in unregulated digital assets, including cryptocurrencies.”
More specifically, Brown seems concerned about reports of “fake crypto apps that have scammed hundreds of investors”.
The senator’s letter comes in the wake of a… FBI report detailing fraudulent cryptocurrency apps and wallets that claimed to be good investment opportunities. The report warned that 244 investors had been defrauded of $42.7 million by rogue apps.
In his letter, Brown asks Apple and Google to provide details about their app review processes, the steps they are taking to prevent fraudulent crypto apps, and other information. He has asked both companies to respond before August 10.
Apple has been criticized in the past for allegations of enabling crypto fraud in the App Store. In 2021, a man accused the company of allowing a fraudulent app that uses more than $600,000 worth of Bitcoin from him.
The Cupertino tech giant has also been targeted by fraudsters in the past. In 2020, Scammers Compromised Apple’s Official Twitter Account To promote a Bitcoin scheme. However, that type of crypto scheme is not detailed in Sen Brown’s letter, which targets rogue apps and wallets for iPhone and other devices.