Australia markets closed
  • ALL ORDS

    7,381.10
    +19.20 (+0.26%)
     
  • AUD/USD

    0.6978
    -0.0048 (-0.68%)
     
  • ASX 200

    7,127.70
    +22.30 (+0.31%)
     
  • OIL

    86.28
    -0.25 (-0.29%)
     
  • GOLD

    1,787.00
    -2.70 (-0.15%)
     
  • BTC-AUD

    34,160.23
    -479.33 (-1.38%)
     
  • CMC Crypto 200

    569.35
    -2.57 (-0.45%)
     

Senate committee chair grills Apple, Google over protection against crypto app scams

·Reporter
·1-min read
Drew Angerer/Getty Images

Crypto scams remain a serious problem, and a key senator wants to make sure app store operators are cracking down. Senate banking committee chair Sen. Sherrod Brown has sent letters to the CEOs of Apple and Google requesting answers on their protections against cryptocurrency app fraud. The politician wanted details of their app approval and reporting processes, user alerts for fraudulent activity, coordination with rival stores and monitoring for apps that transform into phishing scams.

We've asked Apple and Google for comment. Brown gave the executives until August 10th to provide responses to the letters.

Both tech firms provide at least some screening for bogus crypto apps. Apple's App Store review guidelines forbid scam apps, including bait-and-switch tactics. Google is less targeted with its Play Store policies, but bars apps that enable illegal activity or "dishonest behavior." Both companies let you report suspicious apps. They haven't historically sent direct scam alerts, however, and aren't known to actively monitor apps in case they launch phishing scams.

Whatever the stances, Brown saw effective safeguards as important. The FBI recently warned that app-based cryptocurrency fraud has already led to losses of $42.7 million. It was "imperative" that shops protect investors against this damage, the senator said.

There's no certainty that the requests will translate to legislation requiring stricter anti-fraud systems. The committee request could clarify the stances of Apple and Google on the subject, though, and might increase the pressure to take further action. At the least, it's a reminder that an app's presence on the App Store or Google Play isn't a guarantee it will be trustworthy.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting