Senators Ask Meta About Combating Crypto Frauds on Social Media Sites
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Letter From Six Senate Banking Committee
The letter from six Senate Banking Committee members stated that according to statistics from the Federal Trade Commission, frauds using cryptocurrencies cost consumers $417 million between January 1, 2021, and March 31, 2022.
The letter, sent on September 8, asked for thorough responses in writing by October 24 to several questions. It includes Meta's current policies for locating and removing cryptocurrency fraudsters from its social networking sites, methods for confirming that cryptocurrency ads are legitimate, guidelines for removing scam artists from platforms, how Meta is collaborating with law enforcement to track down scammers, and other matters.
Prosecution Against Meta
In March, Australian Competition & Consumer Commission said it would sue Meta because the firm had deceived Facebook users by posting ads for cryptocurrency schemes that included local public personalities unaware of the content.
There were links in the advertisements directing Facebook users to a fake news story advocating cryptocurrency or a money-making scheme credited to the public figure shown. After accepting the invitation to sign up, fraudsters contacted the consumers using high-pressure tactics, such as frequent phone calls, to get them to deposit money into the fraudulent schemes.