The Federal Trade Commission released a report that, among other things, identified Facebook, Instagram and WhatsApp as starting points for crypto fraud on social media.
A group of Democrats from the United States Senate has reportedly asked Meta CEO Mark Zuckerberg to provide information about Facebook’s policies on cryptocurrency fraud.
According to the Washington Post, Senators Menendez, Brown, Warren and Sanders called on Zuckerberg for better methods of detecting crypto scams. They also suggest coordinating with law enforcement.
Senators are concerned that Meta could be a platform for cryptocurrency fraud, which can lead to more damage because of the connectivity with different platforms.
Social media sites are an instigator of scammers and fraud, the biggest perpetrators of which are social media sites. The firms that conduct scamming practices generated $1 billion in such activities in 2021 and largely do so over these sites.
Senators supported a request for Meta to offer warnings in languages other than English. Meta spokesperson, Stone, acknowledged the social media firm invested “substantial resources” to detect and prevent scams on their site. The Democrats requested Zuckerberg respond with detailed answers by October 24.
The U.S. Federal Bureau of Investigation has identified crypto scams for what they are, warning the public about apps which use the same logos and identifying information as legitimate companies to commit fraud. Many unsuspecting users have also fallen prey to scams on Twitter and YouTube through hacked accounts, copycat websites, and fake crypto projects and airdrops.