FTC data indicates that 49% reported cryptocurrency frauds referred to scams perpetrated on social media between January 1, 2021 and March 31, 2022. Six Democratic senators wrote to request detailed information by Oct. 24 in response to a number of questions.
Mark Zuckerberg, CEO of Meta Platforms was asked by a group Democratic senators about his company’s efforts to combat cryptocurrency scams via its Facebook, Instagram, and WhatsApp platforms.
Reports of crypto scams on social media skyrockets
Federal Trade Commission data showed that 49% reported cryptocurrency frauds referred to scams perpetrated on social media between Jan. 1, 2021 and March 31, 2022.
This cost consumers approximately $417 million. The letter was sent by six members of the Senate Banking Committee.
Bob Menendez, New Jersey’s senator, led the group that included Sherrod Brown, Elizabeth Warren, Massachusetts, Dianne Feinstein, California, Bernie Sanders, Vermont, and Cory Booker, New Jersey.
The Sept. 8 letter requested that Meta provide detailed information by Oct. 24, to answer a number of questions, including Meta’s current policies to find and remove crypto scammers from its social platforms, procedures to verify that the crypto ads are legitimate, policies to remove scammers from platforms, and how Meta is working with law enforcement to help track down and eliminate scammers.
The Australian Competition & Consumer Commission announced in March that it would take legal actions against Meta. It claimed that Meta had misled Facebook users through advertisements for crypto scams featuring local officials who were not aware of the content.