Six US senators have asked Meta CEO Mark Zuckerberg how he will handle cryptocurrency scams on social media, including Facebook, Instagram and WhatsApp. “We are concerned that META has provided a breeding ground for cryptocurrency fraud that will cause significant harm to consumers,” the lawmakers wrote.
Senators want answers from Mark Zuckerberg and Meta Platforms
US Senators Robert Mendez, Sherrod Brown, Elizabeth Warren, Dianne Feinstein, Bernard Sanders and Cory A. Booker jointly sent a letter to Meta Chairman and CEO Mark Zuckerberg on Thursday. Media platforms including Facebook, Instagram and WhatsApp.
The senators wrote, citing “recent reports of fraud on other social media platforms and apps,” including data from the Federal Trade Commission (FTC).
We are concerned that Meta provides a breeding ground for cryptocurrency scams that can cause significant harm to consumers.
“While crypto scams are rampant on social networks, several meta sites are particularly popular hunting grounds for scammers,” the letter states. “Among consumers who reported being scammed from a cryptocurrency on a social media site, 32% identified the scam as occurring on Instagram, 26% on Facebook and 9% on WhatsApp.”
The lawmakers asked Zuckerberg seven questions about Meta’s current cryptocurrency scam. Metta’s CEO is asking for details by October 24.
For each of Meta’s social media platforms, the questions include how the company can detect and remove crypto scammers, educate and warn users about crypto scams, and help victims of fraudulent crypto schemes. The senators asked how Meta could ensure that crypto ads are not scams and what regulatory approvals are required to advertise on the platforms. Moreover, they questioned the extent to which Meta cooperated with law enforcement to track down fraudsters.
US officials are warning that fraudsters are increasingly using social media to defraud investors. In August, the U.S. Securities and Exchange Commission (SEC) warned about scammers exploiting investors’ fear of missing out (FOMO) on social media.
Have you experienced scams on meta platforms including Facebook, Instagram and WhatsApp? Let us know in the comments section below.
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