Senator Sherrod Brown (D-OH) – Chairman of the Senate Banking Committee has sent a letter to the chief executives of Apple and Google demanding a response to fake crypto investing apps spreading in their respective stores.
The App Issues
As the announcement mentioned, the Federal Bureau of Investigation (FBI) warned citizens this month that fake apps have already embezzled $42 million from investors in under a year.
These scams often serve by using stolen logos, and brands, and recognizing information from other established firms. Afterward, they create fake apps and leverage the legitimate company’s reputation to fool investors into feeding them with money.
Brown asserted that the imperative of steering investors away from such undertakings lies upon the crypto industry, but also in the app stores that vend them.
The Senator Mentions that it is likewise crucial that app stores have the proper safeguards in place to prevent fraudulent mobile application activity.
The senator has particularly requested that Google and Apple provide a clear outline of the steps each takes when endorsing crypto apps on their platforms. It also asked about their processes in notifying fraudulent apps, and the frequency in which they survey their apps for defrauding activity.
Brown’s request was revealed just ahead of a banking committee hearing pertaining to crypto/security market scams on Thursday. Before the hearing, crypto-friendly senator Pat Toomey revealed a statement arguing that the Securities and Exchange Commission (SEC)’s “regulation by enforcement” procedure has harmed consumers. Read more here.
Crypto Scams During the Bear Market
Earlier this month, Chainalysis Director of Research Kim Grauer explained that “The crypto winter” has shown up in a period of relative peace and safety from cryptocurrency scams. She expressed that such fraudulent activity tends to grow and fall with the performance of the market.
Regardless, more cultivated scams are becoming dominant. Here are some of the crypto scams in recent times
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