Six US senators have demanded answers from Meta CEO Mark Zuckerberg on how his company handles cryptocurrency scams on its social media platforms, including Facebook, Instagram and Whatsapp. “We are concerned that Meta provides a breeding ground for cryptocurrency fraud that causes significant harm to consumers,” the lawmakers wrote.
Senators want answers from Mark Zuckerberg and Meta Platforms
US Senators Robert Menendez, Sherrod Brown, Elizabeth Warren, Dianne Feinstein, Bernard Sanders and Cory A. Booker jointly sent a letter Thursday to Mark Zuckerberg, Chairman and CEO of Meta, about his company’s “efforts to fight against cryptocurrency scams on its social networks”. media platforms including Facebook, Instagram and Whatsapp.
Citing “recent reports of scams on other social media platforms and applications,” including data from the Federal Trade Commission (FTC), the senators wrote:
We are concerned that Meta provides a breeding ground for cryptocurrency fraud that causes significant harm to consumers.
“While crypto scams are prevalent on social media, several Meta sites are particularly popular hunting grounds for scammers,” the letter describes. “Of consumers who said they had been the victim of a cryptocurrency scam on a social media website, 32% identified the scam as coming from Instagram, 26% from Facebook and 9% from Whatsapp. “
Lawmakers asked Zuckerberg seven questions regarding Meta’s current policies regarding cryptocurrency scams. They request that the CEO of Meta respond with detailed information by October 24.
For each of Meta’s social media platforms, the questions focus on how the company finds and removes crypto scammers, educates and warns users about crypto scams, and helps victims of fraudulent crypto schemes. The senators also asked how Meta verifies that crypto advertisements are not scams and what regulatory licenses are needed to advertise on its platforms. Additionally, they asked how well Meta works with law enforcement to track down scammers.
US authorities have warned that scammers are increasingly using social media to defraud investors. In August, the U.S. Securities and Exchange Commission (SEC) warned investors about fraudsters exploiting their fear of missing out (FOMO) on social media.
Have you encountered any scams on Meta platforms, including Facebook, Instagram and Whatsapp? Let us know in the comments section below.
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