Cryptocurrency scams are always a pain in the neck, especially for these guardians of the law. They want answers, and as part of their inquiry, they turn their attention to the sixteenth man in the world.
Democratic senators from the US Senate have questioned Mark Zuckerberg, CEO of Meta, about the company’s actions to combat cryptocurrency fraud.
The Washington Post reports that US Senate Democrats want more details from Meta about how the company handled the cryptocurrency scam, claiming that the company’s platforms are a breeding ground for scam artists.
Bob Menendez of New Jersey leads the group of senators, which also includes Sherrod Brown of Ohio, chair of the Banking Committee, and Elizabeth Warren of Massachusetts.
The senators said many of the Meta sites are particularly popular hunting grounds for scammers, despite the fact that “crypto scams are rife across social media.”
Best Instagram scam site?
About 32% of consumers who reported being scammed with cryptocurrency said that fraudulent activity occurred on Instagram, followed by 26% on Facebook and 9% on WhatsApp.
Lawmakers cited a June 2018 Federal Trade Commission report that described social media and cryptocurrency as an “explosive mix of fraud.”
According to a Federal Trade Commission report, social media platforms were the source of nearly half a billion dollars in crypto-related fraud in 2021, with the majority of them investing.
Lawmakers inquired whether Meta offers “warnings or educational materials about cryptocurrency scams in languages other than English.”
Andy Stone, a representative for Meta, stated that the scams violate company policy and harm its business. Therefore, it invests “significant resources to detect and prevent fraud.
Lost a billion dollars to deceive men
According to a report published by the Federal Trade Commission (FTC) in June of this year, more than 46,000 people have reported losing more than $1 billion in cryptocurrency to scammers since the beginning of 2021. These flaws include, but are not limited to, Bitcoin investment schemes. , pulling the rug, romance scams and trolling.
Bitcoin (70%), Tether (10%), and ether (9%), according to the Federal Trade Commission (FTC), were among the top three cryptocurrencies used to pay scam artists.
Nearly $4 of every $10 reported for fraud that started on social media was in cryptocurrency, far more than any other payment method.
According to these reports, the leading platforms are Instagram (32%), Facebook (26%), WhatsApp (9%), Telegram (7%).
However, Meta platforms are not the only sites where cryptocurrency scams are common. Twitter has also received numerous complaints about cryptocurrency scams and bots.
Recently, cybercriminals were able to commit a crypto scam by streaming a YouTube video promoting fake crypto investments during an Apple parallel event.
BTC total market cap at $412 billion on the daily chart | Source: TradingView.com Featured image from Vanity Fair, chart from TradingView.com