Six U.S. senators have demanded answers from Meta CEO Mark Zuckerberg about how his company handles crypto-currency scams on its social networking platforms, including Facebook, Instagram and Whatsapp. “We are concerned that Meta is a breeding ground for crypto-currency fraud that causes significant harm to consumers“, the lawmakers wrote.
Senators want answers from Mark Zuckerberg and Meta platforms
U.S. 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, regarding the “his company’s efforts to combat cryptocurrency-related scams on its social media platforms, including Facebook, Instagram and Whatsapp.“
Citing “Recent reports of scams on other social networking platforms and applications“, including data from the Federal Trade Commission (FTC), the senators wrote:
We are concerned that Meta provides a breeding ground for crypto-currency fraud that causes significant harm to consumers.
“While crypto-currency scams are prevalent on social networks, several Meta sites are particularly popular hunting grounds for scammers.” describes the letter. “Of the consumers who reported falling victim to a cryptocurrency scam on social networks, 32% identified the scam as coming from Instagram, 26% from Facebook, and 9% from Whatsapp.“
Lawmakers have asked Zuckerberg seven questions about Meta’s current policies regarding crypto-currency scams. They are asking that Meta’s CEO respond with detailed information by October 24.
For each of Meta’s platforms, the questions focus on how the company finds and weeds out crypto-currency scammers, educates and warns users about crypto-currency scams and helps victims of fraudulent crypto-currency schemes. The senators also asked how Meta verifies that crypto ads are not scams and what regulatory licenses are required to advertise on its platforms. In addition, they asked how well Meta works with law enforcement to track down scammers.
U.S. 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 scammers who exploit their fear of missing out (FOMO) on social media.