The crypto scam is always a pain in the neck, especially for these law keepers. They want answers and as part of their investigation, they turn their attention to the 16th richest man in the world.
US Senate Democratic senators questioned Mark Zuckerberg, Meta’s chief executive, on the company’s procedures for combating cryptocurrency fraud.
The Washington Post reports that US Senate Democrats want more details from Meta on how the company is handling the cryptocurrency scam, saying the company’s platforms are breeding ground for scammers. .
Bob Menendez of New Jersey leads the group of senators, which also includes Sherrod Brown of Ohio, chairman of the Banking Committee, and Elizabeth Warren of Massachusetts.
Several of Meta’s sites are particularly popular hunting grounds for scammers, the senators said, despite the fact that “crypto scams are rampant on social media.”
Best Instagram Site for Crypto Scams?
About 32% of consumers who said they had been scammed with cryptocurrency said the fraudulent activity happened 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 cryptocurrencies as “an explosive combination for fraud.”
According to the FTC report, social media platforms were responsible for around half a billion dollars in cryptocurrency-related scams in 2021, with the majority involving investments.
The lawmakers asked if Meta offered “warnings or educational materials about crypto scams in languages other than English.”
Andy Stone, a representative for Meta, said the scams violate company policy and harm its business. Therefore, it invests “considerable resources to detect and prevent fraud.
$1 billion lost to scammers
According to a report released by the FTC in June this year, over 46,000 people said they had lost over $1 billion worth of cryptocurrency to scammers since the start of 2021. These downsides include, to name a few. to name a few, bitcoin investment schemes, rug draws, romance scams and phishing.
Bitcoin (70%), tether (10%) and ether (9%), according to the FTC, were the top three cryptocurrencies used to pay scammers.
Nearly $4 out of every $10 reported lost to fraud that began on social media was in cryptocurrencies, far more frequently than any other form of payment.
According to these reports, the main platforms are Instagram (32%), Facebook (26%), WhatsApp (9%) and Telegram (7%).
However, Meta platforms are not the only places where crypto scams are rampant. Twitter has also received many complaints about crypto fraud and bots.
Recently, cybercriminals were able to perpetrate a crypto scam by showing a YouTube video promoting fake crypto investments at an Apple side event.
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