Apple and Google should detail their crypto app review and monitoring processes to prevent apps from becoming phishing scams. The companies must respond to the letter sent by the US Senate before August 10, 2022.
The chairman of the US Senate Committee on Banking, Housing and Urban Affairs, Sherrod Brown (D-OH) requested through a letter that the companies Apple and Google explain their review and approval processes for cryptocurrency platforms in their app stores.
Senator Sherrod Brown sent a letter to Google and Apple because, according to a recently released report by the FBI, 244 investors have been scammed out of $42.7 million dollars by fraudulent cryptocurrency apps. Such platforms claim to be safe and reliable investment services.
For the senator, it is imperative that application stores have the necessary protections to prevent fraudulent mobile app activities.
Senate Member Requests
“Crypto mobile apps are available to the public through app stores, including the Apple App Store (…) while cryptocurrency apps have offered investors easy and convenient ways to trade cryptocurrencies, reports of fake cryptocurrency apps that have scammed hundreds of investors.”
In letters to Apple CEO Tim Cook and Google CEO Sundar Pichai, the U.S. Senate member asked the CEOs to detail their processes for reviewing and monitoring cryptographic apps to prevent apps from “transforming into cryptocurrencies.” phishing scams.”
US Government Demands Answers
In the text of the letter from the chairman of the US Senate Committee on Banking, Housing and Urban Affairs, Tim Cook and Sundar Pichai are questioned due to the increase in fraudulent applications and affected users.
“In recent years, cryptocurrency trading platforms and exchanges have seen a surge in popularity, with millions of investors downloading mobile apps to trade and invest in digital assets (…) The FBI recently issued a warning about the proliferation of Fake cryptocurrency apps created by cyber criminals to mislead investors.
Criminals have stolen logos, names, and other identifying information from crypto companies, then create fake apps to trick unsuspecting investors into thinking they are doing business with a legitimate crypto company.”
Specifically, the document asks the two companies to clarify and share information about the review they carry out before approving cryptocurrency apps, taking into account the following points:
- List the factors or criteria used by your business to determine whether to grant approval to an app, including the steps your business takes to confirm that the app requesting approval is a trusted and secure app.
- Describe the steps your app store takes to prevent cryptocurrency apps running on your platform from circumventing policies by becoming phishing apps.
- In your response, please describe in detail how often your app store monitors apps to protect against fraudulent activity, as well as the steps you take to remove apps that are determined to be fraudulent.
- Describe all the systems and processes your company has in place for people to report fraudulent apps.
- Please describe any actions your app store has taken to alert people to actual or potentially fraudulent activity associated with cryptocurrency investing apps.
- Since January 2020, has your app store coordinated or shared actions or activities with other app stores related to the suspension or removal of fraudulent cryptocurrency apps? If so, please explain.
Finally, Senator Brown requested that Apple and Google respond to the questions raised in the document before August 10, 2022.
By Audy Castaneda
