Blog: Sen. Brown seeks Google, Apple crypto app fraud protection insight – Financial Regulation News – Financial Regulation News

Senate Committee on Banking, Housing, and Urban Affairs Chairman Sherrod Brown (D-OH) recently forwarded correspondence to Google and Apple leaders, requesting insight regarding crypto app fraud protections.

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Brown sent letters to Alphabet and Google CEO Sundar Pichai and Apple CEO to inquire about the companies’ mobile application safeguards in the wake of a Federal Bureau of Investigation (FBI) warning against fake cryptocurrency apps having scammed hundreds of investors for losses over $42 million.

“Cyber criminals have stolen company logos, names and other identifying information of crypto firms and then created fake mobile apps to trick unsuspecting investors into believing they are conducting business with a legitimate crypto firm,” Brown wrote. “Alarmingly, far too many investors have fallen victim to such scams with losses exceeding $42 million. 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.”

Brown maintains that app stores must have proper safeguards in place to prevent fraudulent mobile application activity.

Per the letter, Brown is requesting the companies describe the review process initiated before approving crypto apps to operate in their app store; describe the steps their app stores take to prevent cryptocurrency apps operating in their app store from circumventing app store policies by transforming into phishing apps; describe systems and processes the companies have in place for people to report fraudulent apps; and describe actions their app stores have taken to alert people about actual or potentially fraudulent activity associated with cryptocurrency investment apps.

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