Senators Order Zuckerberg to Explain Cryptocurrency Scams on Facebook, WhatsApp and Instagram

Senators Order Zuckerberg to Explain Cryptocurrency Scams on Facebook, WhatsApp and Instagram

Mark Zuckerberg was asked in a letter from a group of US senators what he plans to do to fight cryptocurrency scams on his Facebook, WhatsApp and Instagram platforms.

The senators asked the CEO of Meta (Ex Facebook) to explain what his company will do to address the growing cases of cryptocurrency scams on social media.

The letter sent by senators on Sept. 8 requests detailed information before Oct. 24 for a range of questions, including Meta’s current policy for finding and removing cryptocurrency scammers from their platforms.

Cryptocurrency scams on Facebook, Instagram and WhatsApp

Among the requests, the senators demand that Meta explain procedures to verify that cryptocurrency ads are not scams, policies to keep scammers off its social networks, and how the company is working with authorities to track down criminals.

The senators decided to send the letter after a report from the Federal Trade Commission (FTC) revealed that cryptocurrency scams have increased significantly on Zuckerberg’s social media.

The report released by the FTC in June revealed that about 50% of people who have lost money to cryptocurrency scams since 2021 claimed it came from a social media platform.

Meta’s Instagram facilitated 32% of reported scams, while Facebook and WhatsApp were cited 26% and 9% of the time, respectively.

“Based on recent reports of fraud on other media platforms and apps, we are concerned that Meta provides fertile ground for cryptocurrency scams that are causing significant harm to consumers.” – Senator Robert Menendez told The Washington Post.

According to the letter from the senators, scams from this source cost users an estimated $417 million. Members of the Senate Banking Committee include Bob Menendez of New Jersey, who led the committee, Sherrod Brown of Ohio, Elizabeth Warren of Massachusetts, Dianne Feinstein of California, Bernie Sanders of Vermont, and Cory Booker of New York Jersey.

More than 95,000 users lost about $770 million to social media fraud, according to the FTC report. More than 70% of reported scams were classified as investment, romance, or online shopping scams.

A BBC investigation found that thousands of victims lost more than $18 million to social media scams. Most scams use the image of influential personalities like Elon Musk.

Source: Live Coins