In an open letter to Apple’s CEO and Alphabet’s CEO, Senator Sherrod Brown has requested information about how they refrain from supporting cryptocurrency scams.
What Is the Senator’s Concern?
In order to deceive unsuspecting investors into thinking they are doing business with a legitimate cryptocurrency firm, Brown claims that fraudsters have stolen names, logos, and other identifying information from bitcoin businesses and created bogus mobile applications.
To a question regarding Instagram postings, Walsh responded that social media disinformation played a key role in spreading such scams, such as scammers using a dating app or messaging app to trick people into sending them money or investing in fake cryptocurrency platforms.
How did the companies respond?
In response to the senator’s question, the companies explained how they verified whether applications were “reliable and safe,” prevented phishing apps with false applications, and alerted users of such apps.
The report stated, “While cryptocurrency investment firms and related services should take all necessary precautions to avoid fraud, including warning investors of scams, app stores must also safeguard against fraud against mobile applications.”
How should such scams be dealt with?
According to Brown, politicians and regulators should share a part of the blame in dealing with crypto scams on platforms and applications during Thursday’s Senate Banking Committee hearing titled “Understanding Scams & Risks in Crypto and Securities Markets”:
While speaking at a Senate Banking Committee hearing on Thursday about “Understanding Scams & Risks in Crypto and Securities Markets”, Brown appeared to place responsibility for tackling crypto scams on platforms and applications on politicians and regulators:
There are guidelines and a clear road map, and needs to ensure the regulators maintain the law and safeguard our economy’s people and families. The industry shouldn’t be allowed to make its own rules.