Google and Apple Urged to Report on Measures to Combat Fraudulent Crypto Apps

The Chair of the Senate Banking Committee, Sherrod Brown, called on Alphabet and Apple to provide information on measures to prevent cryptocurrency fraud in apps hosted in their stores.

Brown sent the corresponding letters to Alphabet CEO Sundar Pichai, the parent company of Google, and to Apple CEO Tim Cook.

With this request to the tech giants, he sought to follow FBI reports about the activity of cybercriminals creating fraudulent apps for investments in cryptocurrencies. The agency recorded investor losses totaling more than $42 million.

In Brown’s view, cryptocurrency companies must take the necessary steps to prevent fraudulent activity. However, it is equally important that app stores have corresponding security measures, he says.

The senator asked Alphabet and Apple to report by August 10:

• on the process for screening cryptocurrency apps before they are approved for listing in stores;
• mechanisms to prevent phishing apps from spreading;
• systems for tracking fraud and removal measures if detected;
• operational procedures for notifying users about such apps.

As Immunefi specialists note, in the second quarter of 2022, total losses of crypto projects from hacks and fraud amounted to more than $670 million.

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