Report: US Lawmakers Call on Mark Zuckerberg to Take Action on ‘Breeding Room’ of Cryptocurrency Scams

A group of US Senate Democrats have asked Meta CEO Mark Zuckerberg to provide details on the social media giant’s policies regarding cryptocurrency fraud.

According to a Friday report from the Washington Post, Senators Robert Menendez, Sherrod Brown, Elizabeth Warren, Dianne Feinstein, Bernie Sanders, and Cory Booker they asked Zuckerberg on actions the company can take to detect cryptocurrency scams, to coordinate with law enforcement, and to help victims of fraud. Meta currently controls Facebook, WhatsApp, Messenger and Instagram.

“Based on recent reports of scams on other social media platforms and apps, we are concerned that Meta provides a breeding ground for cryptocurrency fraud causing significant harm to consumers”according to the group of senators.

New: Senate Democrats are pressing Meta about its efforts to combat crypto scams, amid reports from federal regulators that they’re booming on Facebook & Instagram https://t.co/rwRonRuhMh

– Cristiano Lima (@viaCristiano) September 9, 2022

News item: Senate Democrats press Meta on its efforts to combat cryptocurrency scams, amid reports from federal regulators that they are booming on Facebook and Instagram

Lawmakers cited a Federal Trade Commission report from June, which labeled social media and cryptocurrencies a “combustible combination for fraud.” The commission reported that roughly half of the $1 billion cryptocurrency-related scams in 2021—most of which focused on investments—originated from social media platforms:

“Nearly four in ten dollars reported lost to social media fraud was lost in cryptocurrency, far more than any other payment method. The top platforms identified in these reports were Instagram (32%), Facebook (26 %), WhatsApp (9%) and Telegram (7%).”

Additionally, Democratic senators asked Meta to provide warnings about potential scams in languages ​​other than English. Meta’s spokesman, Andy Stone said the social media company invested “significant resources to detect and prevent scams.Lawmakers have asked Zuckerberg to respond with detailed information by October 24.

The US Federal Bureau of Investigation also targeted cryptocurrency scams in a July advisory, warning the public about apps using the same logos and identifying information as legitimate companies to commit fraud.. Many unsuspecting users have also fallen victim to scams on Twitter and YouTube through hacked accounts, mirror websites, and fake cryptocurrency projects and launches.

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