Crypto scams are on the rise on popular platforms like Instagram, Facebook and WhatsApp
Senate Democrats are demanding more information from Facebook’s parent company about its efforts to combat cryptocurrency fraud, citing federal regulators’ warnings that such scams are on the rise across major platforms such as Instagram and WhatsApp. The Federal Trade Commission has recently reported that social media is increasingly becoming a prime target for fraudsters, particularly those looking to cash in on the crypto craze that is sweeping the country.
In June, the agency released data showing that nearly half of those who reported losing money through a cryptocurrency scam since 2021 said it started on a social media platform. “Reports point to social media and cryptocurrency as a potentially explosive combination for fraud,” the agency wrote. According to the agency, cryptocurrency is the most common form of payment for social media scams, and a surge in cases has resulted in hundreds of millions of dollars in consumer losses.
The FTC noted that Meta owned three of the top four platforms mentioned in those cases. Instagram was mentioned in 32% of reported crypto scams on social media, while Facebook and WhatsApp were mentioned in 26% and 9% of cases, respectively.
The letter requests that Meta CEO Mark Zuckerberg detail the company’s policies on cryptocurrency scams by Oct. 24, as well as what steps the company takes to assist victims of fraud and law enforcement in pursuing cases, and whether the company takes any steps to proactively detect fraud.
Senators Sherrod Brown (D-OH), Elizabeth Warren (D-MA), Dianne Feinstein (D-CA), Bernie Sanders (I-VT), and Cory Booker (D-NJ) all signed the letter (D-N.J.). “Scam ads violate our ad policies and harm our business by detracting from people’s experiences,” said Meta spokesperson Andy Stone in a statement to The Washington Post.
