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